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Technology Stocks : InfoSpace (INSP): Where GNET went!
INSP 92.23-4.4%Jan 16 9:30 AM EST

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To: El Matador who wrote (320)10/3/1998 7:59:00 PM
From: Technologyguy  Read Replies (2) of 28311
 
Let's compare the leader in search engines--Yahoo--to GNET, by your measures. Most recent quarter(through 6/98)revenues for YHOO of $41M, market cap of $11.8 billion. Price to 4x most recent Q sales ($164M) ratio equals 72. (GNET: market cap of $93 million, 4x most recent Q sales of $1.3M=$5.2M, for a ratio of 18.)

[Maybe I just showed that YHOO is horribly overvalued.] ;-)

Two reasons I think GNET can be more efficient than other search engines: 1. Metacrawler uses the other search engines to do the work for GNET. For a very cheap license from the Univ. of Washington, GNET got a great tool to effeciently search the Internet. Other search engines employ lots of people to go through sites individually (a very cost inefficient method) or report enormous numbers of matches (very frustrating to the user). Metacrawler's approach avoids both of those outcomes. 2. GNET is focusing on building a suite of web sites that attract high value Internet users (by surveys shown to be wealthier and more likely to engate in e-commerce than users of other sites). This skewed demographic allows GNET to compete more effectively than other sites for advertisers. We'll get more data from the latest quarterly numbers to come out the end of this month that should show how effective the strategy is.
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