dcsimg
RealTime IT News

Historical Values: Future Tense Makes More Sense

History lesson: Pioneers land on North America, head west and find ocean. Pioneers land in Australia, head west and find desert. In the Web site value arena we think that lesson applies closely. Some of the sites shown on the list below are headed for California while others may soon discover a seething desert.

Said another way, plugging in a Web site into a general purpose value equation is fruitless. Each is headed its own way. No more than downtown Manhattan is worth more than downtown Podunk. Yet the question we keep hearing many investors ask is "why isn't (fill in the blank for your favorite Web site) worth as much as blank? A specific example: Why isn't Infoseek as valued as Excite?

It's a real estate game. Much of it is where the particular Web site may be in 24 to 36 months--geologic time in Internet years. A Web property is only as valuable as a going concern, or as valuable as its vision and leadership. What was CompuServe or Prodigy worth in 1990? And today?

So the next time you see a stock message board stacked sky high with the suggestion that one firm should be worth $X because its rivals are trading at $X remember that the Edsel was able to drive from point A to point B but nobody gave a hoot.

Enough travel lessons for one day. Check out our latest numbers:

WebSite Value Index

Mecklermedia's February March 25 April 1   March 25 April 1  
WebSite Value Index Unique Market cap Market cap Percent Value Value Percent
© 1998 Mecklermedia. www.internet.com Users or est. PMV * or est. PMV * change Per Per change
Web Property (millions) (millions) (millions)   User User  
Yahoo 31.3 $ 4,044 $ 4,483 11% $ 129.20 $ 143.23 11%
Netscape.com* 23.1 $ 675 $ 700 4% $ 29.22 $ 30.30 4%
Microsoft.com* 17.9 $ 1,150 $ 1,200 4% $ 64.25 $ 67.04 4%
Excite 16.5 $ 792 $ 870 10% $ 48.02 $ 52.73 10%
AOL.com* 14.1 $ 1,150 $ 1,250 9% $ 81.56 $ 88.65 9%
Infoseek 13.7 $ 562 $ 637 13% $ 41.01 $ 46.46 13%
GeoCities* 12.5 $ 225 $ 250 11% $ 18.00 $ 20.00 11%
Lycos 10.2 $ 665 $ 796 20% $ 65.21 $ 77.99 20%
MSN.com 8.3 $ 500 $ 475 -5% $ 60.24 $ 57.23 -5%
AltaVista* 7.6 $ 225 $ 235 4% $ 29.61 $ 30.92 4%
TOTAL $ 155 $ 9,988 $ 10,895 9% $ 566 $ 615 9%
AVERAGE $ 16 $ 999 $ 1,090 9% $ 57 $ 61 9%
user numbers source: Relevant Knowledge; All others: Mecklermedia; PMV=est. private market value



×
We have made updates to our Privacy Policy to reflect the implementation of the General Data Protection Regulation.