GoTo.com, promising Internet search engine Message Board

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Technology Stocks : GoTo.com, promising Internet search engine

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To: ChinuSFO who wrote ()	7/24/1999 6:57:00 PM
From: Mr. Aloha	of 977

Hello, the comment about never being "profitable"... is an interesting one. Yes it's usually thrown into to S-1 statements. GoTo.com has made almost all the right moves in a VERY short period of time. The only downside is the amount of money they spend bringing the site to the publics attention. The EXPENSIVE contact with Netscape will really take a hit on the balance sheet. (They might have been able to work out a deal with Netscape that kept the upfront costs down by paying a few pennies for each visitors to GoTo) Their earnings will continue to explode based on the increased visitors but the marketing expenses will continue to be a problem. Look at the last Q's filing with the SEC. I looked at the S-1 statement. Check out the marketing expenses etc.. It's HUGE. Ebay built their business on word of mouth and had little marketing costs. That's an investor friendly route. Of all the things GoTo has done right, their quick-spending marketing campaigns will continue to affect shareholders in the same manner that Amazon's does. Eventually people get tired of all the losses and those explosive growth figures slow down (look at amazon now). That doesn't mean that investors won't make a fortune? It's just a matter of timing. Was the fortune buying at $20 or will today's price look good in a few months or years? The market cap's at $2.5 billion now and the company made something like $1 million last year? This next quarter's earnings will probably be a few hundred percent higher. Hell, it could be $2 million in the Q alone? The losses will still be staggering however. Then you need to factor in the "limit" that web sites will pay. It's a really interesting scenerio and a good example of an open market system. The key will be keeping the spending down to earn a profit. That's were investor interest kicks in. Does a company like GoTo care about profits right now? No, they care about market share and exposure. I like what they've done and their future but not at $50 UNLESS the Internet stocks get stupid again.... Anyway, enough rambling.... (keep an eye on oil prices)

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