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Date: Tuesday 07th 2008f October 2008 02:04:02 AM
 

CNET Can't Execute - 04/26/2006
By: Novice Investing Staff
CNET Networks Inc. (CNET) dropped 18 percent after reporting a first quarter loss. A few analysts stipulate that CNET has lost revenue share to larger portals such as Google and Yahoo!. This is evidenced with Webshots  , its photo sharing service, drops its page views by 14% after two new competitors emerge. Revenue for the first quarter is up merely 4 % while Google and Yahoo! reported outsize gains in revenue. In Yahoo!'s case, first quarter revenue rose 34%.
 
While the company blamed the delay of Microsoft's Vista and Sony's Play Station 3, one analyst points out that it is mostly company-specific problems. Having said that, we can check on CNET's web properties and determine its share based on Alexa rankings. Here how they fare recently:
 
  • Download.com : 6,000 per million users.     
  • CNET.com : 11,150 per million users.    
  • Webshots.com : 3,400 per million users.           
  • MP3.com : 695 per million users.
  • ZDNet.com :2,250 per million users.
  • News.com : 11,150 per million users.
Based on these alone, CNET networks draw 3.46% of total internet visitors. Last September, we calculated that CNET draws 3% of total internet traffics. This is an improvement over September but, revenue does not increase by the same rate. That is an anomaly. One reasonable explanation is that the quality of CNET's property has deteriorated. That is a concern if you depends on content as much as CNET does. If it is true, then this is company-specific problem.
 
Having said that, Alexa rank is assembled as a guide, not a detailed statistics of your web visitors. Therefore, with the stock down by 18%, investors might take a look at CNET Networks for possible turnaround investment. After all, content is king.
 
END
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Disclaimer: The sole purpose of this article is educational. This article is merely the opinion of the writer and is not in any way a buy/sell recommendation regarding CNET Networks Inc. or any other securities. 

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