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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: truth who wrote (16267)	1/19/2000 2:23:00 PM
From: jon zachary	Respond to of 28311

Go2Net: Keeping the Growth Story Going fool.com By Brian Graney (TMF Panic) January 19, 2000 Internet network-slash-portal Go2Net (Nasdaq: GNET) jumped this morning after putting up an impressive set of fiscal Q1 results after the close yesterday. Revenues climbed 43% sequentially to $14 million, which helped drive pro forma net income 37% higher to $7.3 million. Earnings per share (excluding tax benefits, intangibles amortization, and stock option expense) rolled in at $0.16, making quick work of the First Call mean estimate of $0.07. In early trading, Go2Net's shares accelerated for a 7% gain. CEO Russell Horowitz referred to the company's "substantial operating leverage" in the earnings release and in interviews with the media last night, and the numbers back up his comments. Most of the leverage comes from the tight ship Go2Net runs, sporting an S.S. Minnow-style small crew of only 325. Keeping the costs of the business down allows a good deal of Go2Net's incremental top-line growth to fall directly to the bottom-line. This relationship is best seen in the company's operating margins, which rose to 24.1% from 17% in the previous quarter. On the balance sheet, the total assets supporting the revenue growth rose by a mere 16% during the quarter while working capital expanded by $18.7 million. Much as portal giant Yahoo! showed in its recent Q4 financial report, Go2Net's business is not only growing quickly but profitably as well. That contrasts with many other content-related Web companies, which appear to have the rapid growth part down but lack follow-through on the earnings front. That's not a blanket condemnation of other content companies and business models per se. Rather, it just goes to show the important role that scale is playing in separating the early Internet leaders from the rest of the field at this point in the race. Go2Net's scale metrics, for lack of a better term, are heading in the same upward direction as its revenues and earnings. Average daily page views leapt to nearly 29.6 million in December, up from 25.8 million in September and just 8.1 million a year ago. Meanwhile, the company cracked Media Metrix's top ten list of digital media and Web properties in November, coming in at #10 with a unique visitor count of almost 11.5 million. The top ten ranking is a significant psychological and business milepost, especially considering that Horowitz has alluded in the past to the fact that some 70% of all Internet advertising-related revenues flow to the top ten sites. With that in mind, it's worth noting that the company's advertiser count grew to 530 from 452 during Q1. Then again, Go2Net is much more than a hodgepodge of ad-supported vertical content sites, such as Silicon Investor in the personal finance area, MetaCrawler in search and directory, and PlaySite in interactive games. The business areas that investors need to keep an eye on are the company's opportunities in small business-to-business (B2B) e-commerce and broadband portal services. The small business B2B element is already humming along, with Go2Net's cornerstone HyperMart Network attracting more than 12,000 new merchants in Q1, increasing its merchant total by 27%. The results from the broadband efforts, most notably Go2Net's close alliance with broadband maven Paul Allen and his Charter Communications cable operations, have yet to show up in the financials. If all goes according to plan, however, that will change later this year as the company rolls out a broadband TV set-top portal and a broadband PC portal. Whether the company's broadband efforts turn out to be a home run or not will be central to where Go2Net's valuation goes from here. The growth of the vertical content sites and the focus on running an efficient business have helped the company's market capitalization expand to $4.6 billion from $800 million over the past 12 months alone. To go further, Go2Net will need to realize the potential from the small business and broadband services with the same deftness that has been a hallmark throughout the company's three-year Web existence. Related links: Daily Double, 6/24/99: Go2Net Fool Plate Special, 3/16/99: You Go Now

To: truth who wrote (16267)	1/19/2000 2:25:00 PM
From: jon zachary	Read Replies (1) \| Respond to of 28311

If I get another push up in the stock by the end of the day, I am out of it for good. a new broker cant come out and issue a new buy until they have had all of their clients buy at favorable prices..if you sell at this point, unless it is a short term gain, youre crazy ! late.....jZ

To: truth who wrote (16267)	1/19/2000 5:40:00 PM
From: levy	Read Replies (1) \| Respond to of 28311

Truth here is my view...We got rid of all the wimps today...probably also including some of the posters on this thread.... 2,500,000 shares traded which is three times normal is great. A big volume day tomorrow and add in playervermont's buy and this thing is headed up....the weak hands are being bought up...thats my read. Although it be great,I see no need for coverage....we got this far without it and we can continue forward without them...all we need are deals....and deals we shall get. I really do not think I am biased when I say GNET management has the right stuff....people are going to come to Go2Net because they like management and feel they can work with them...just compare our guys showing yesterday to some other people in the news lately....like Levin and Case...our guys look and act on the move because they are on the move.....that is the perception I see and the one that will keep me in this stock....and thats the truth