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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: saukriver who wrote (35167)	11/22/2000 11:45:10 AM
From: Apollo	Read Replies (1) \| Respond to of 54805

Exodus..... Web hosting is a commodity, and it has been since at least 1999. Boatloads of companies moving into this arena. Exodus' customers are smart and will surf to whichever company gives them the best deal. When I first presented Exodus as an early Project Hunt-type report, about 11 months ago, we had these discussions. That's why I always said it wasn't a gorilla, but a King, without IPR. Its market leadership was based on managerial skill, and value-added applications to the basic web hosting, to increase revenues. The fact that revenues per customer increase steadily with each quarterly report tells me that customers like what Exodus has to offer. I also think that "switching costs, or stickiness" is hard to measure or compute, and after watching this company for 18 months, I'm beginning to sense that customers won't switch easily. That, I think, explains why Exodus's customer churn is < 2%. Good luck if you hold Exodus. I don't. I was just addressing the questions that had been put to me on Exodus. I announced in the Spring to the Thread that I was out, because sequential revenue growth was beginning to slow, from the incredible 40-45% range to the merely fantastic 25-30% range; in conjunction with the fact it was not gorilla candidate. I'd rather be in Rambus, which I think is a gorilla candidate. Or Gemstar, although I'm not sure I'm thrilled to hear of mergers with B&N, or forays into OTB in NY. Apollo