part 2
<<By what measures ought Lycos be selling at 1/2 of Yhoo. what is your reasoning?
>>
I already discussed some financial statistics.
Now I want to cover audience reach. Source for this first audience reach statistic is this article, already discussed on this thread:
biz.yahoo.com
which shows Lycos with an audience reach of 45.2% vs Yahoo's 48.0% in November. On a per share of stock basis, Lycos has about twice the reach per share as yahoo.
Other articles have made it clear, though, that the average Yahoo user spends more time on Yahoo than the average Lycos user spends on Lycos, I can't find those statistics, but I refer you to an article (whose statistics are a few months old now) at
business2.com
It shows Lycos with monthly page views (a surrogate for time spent) of 775,777,371 compared with 3,806,848,681 for Yahoo. Dividing these monthly page views by the shares outstanding (as reported by Yahoo finance) gives: Lycos 18.1 page views per month per share
Yahoo: 38.7 page views per month per share.
So on a per share of stock basis, on the basis of total reach, Lycos is way ahead, but in terms of pages read per share of stock, Yahoo is about double Lycos.
I think that Yahoo should also get the benefit of being the biggest and of having reported the most recent accounting profit.
So Yahoo closed at $414 while Lycos closed at $131. Lycos is selling at .3 Yahoo. .5 Yahoo (today) would be $212. |
