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Home | Getting Started | Personal Finance | Q & A | Sample Portfolio | Glossary | About Us |
| Date: Monday 01st 2008f December 2008 04:25:03 PM |
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CNET Losing Its Connectivity? - 10/27/2006 |
| By: Novice Investing Staff |
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| That was last year. How about the latest statistics? We track several bigger CNET's web properties ( lower traffic site is insignificant) and the result is tabulated below | |||||||||||||||||||||||||||||||||
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| While most of CNET's web properties are showing an increase in traffic, the loss in traffic from Webshots.com is pulling the entire company down. On September 2005, CNET drew 29,460 reach per million users (2.95% total traffic) as opposed to the current 27,778 reach. (2.77% total traffic). The decline is not as worrisome as some might say but it is a warning sign nevertheless. | |||||||||||||||||||||||||||||||||
| In particular, Webshots.com lost two third of its traffic from last year's traffic of 8000 reach per million users. A glance of its home page shows that Webshots is a photo sharing service, which, we believe is hit hard by the emergence of social networking site and other photo-sharing services. Webshots had fought back by introducing college live but so far, it has yet to bear any fruit. |
| CNET is quite fortunate to have a vast collection of web properties to cushion a sharp fall in traffic from one of its sites. However, management should not rest on its laurel now. If other web properties are being attacked by emerging competitors, then the sharp drop in traffic will be more pronounced. Overall, CNET is fairly valued at around $ 1.33 Billion. (Google is buying You Tube for $ 1.7 Billion this month). It has an equal amount of cash versus its long term debt. Profit, however, is expected to come in light at $ 0.17 this year versus stock price of $ 9.00 per share. |
| 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. (CNET) or any other securities. |
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Several
analysts and blogger had questioned the drop in CNET's traffic over the past
several months. They reasoned that CNET is sandwiched between the low-cost
quickly-adept bloggers and high end content provider such as Yahoo! and AOL.
The latter had made most of its content for free now, to counter the rapid
decline in its dial-up subscribers. A year earlier, we did a