Wired Weekly Pick for the week beginning Sunday, October 2, 1998
Go2Net Inc. (NASDAQ: GNET)
GNET Snapshot: Everybody have a good week trying to guess which way the
market is going to
turn? Considering how the market is we have selected a company in an
industry that we have a
bit of knowledge about...The Internet. GNET is the company that owns
the web site that everyone
of you have either visited in the past, are a paying member of now, or
will be at sometime in the
future. In case you need to be informed, the site is "The Silicon
Investor". The "SI" site was
purchased by GNET earlier this year in a stock swap for approximately
$35,000,000.00 Although
this acquisition may seem costly at first, in our opinion, the price
paid to acquire the type of
traffic that "SI" produces on a daily basis, was well worth the price
on a long term revenue model
for GNET. To fully appreciate that purchase, Gnet, with it's many other
websites have now
passed the 1,000,000 unique visits per day mark, with the majority
being generated by "SI". For
those that are not aware, the way money is made on the Internet is
through subscription fees and
advertising revenue.
This company has just qualified to be listed on the NASDAQ National
Market System, which is
an accomplishment today when most companies are being removed from the
NMS.
The stock is trading at lower levels than it has for the last several
months, in anticipation of poor
financial performance, which should come as no suprize to anyone, given
that this is a growth
stage company, with further acquisitions on the horizon. Look for more
significant developments
from the recently announced alliance with Mindspring, another ISP you
may have heard of. With
the market as volatile as it is these days, GNET could offer some
upside potential in the near term
if everybody doesn't run for the hills prior to the numbers coming out
on this one.
go2net, Inc. ( go2net.com ) offers a network of technology
and community-driven
Web sites focused on the
following categories: personal finance, search, commerce and games. The
company also develops
Web-related software.
go2net's properties include: Silicon Investor (
techstocks.com ), the Web's largest
financial discussion site;
StockSite ( stocksite.com ), which offers proprietary
articles, portfolio tracking tools,
company research and news
relating to business and finance; MetaCrawler (
metacrawler.com ), a search/index
guide that combines various
existing search/index guides into one service (a ''metasearch
engine''); Hypermart (
hypermart.net ), the Web's
leading provider of free business hosting services; WebMarket (
webmarket.com ), a
one-stop comparison
shopping service; and PlaySite ( playsite.com ), a
Java-based multi-player online
games site. The company's go2net
Labs division develops innovative technologies for use on the go2net
sites and for licensing to
other Internet companies. |
