Novice Investing - CNET Doesn't Click

Date: Monday 01st 2008f December 2008 04:41:52 PM

CNET Doesn't Click - 10/24/2005

By: Novice Investing Staff

CNET Networks Inc. (CNET) reported a loss in its third quarter result. Shares tumbled 6.1% following the announcement. Excluding asset adjustment, CNET posts a profit of 5 cents a share versus 4 cents analysts' guidance. Forward guidance does not disappoint either. For the year, CNET forecasts sales and profit figure that is inline with analyst's expectation.

Back in September, we made a prediction about CNET's revenue figure. It turns out that we were really really wrong. Back then, we forecasted 35 million daily page views for all CNET's properties. The real number turned closer to 99 million. Based on this, CNET reported revenue of $ 86.3 Million. Assuming a 1% click through rate, CNET has about 89.1 Million clicks for the quarter. Dividing it by the revenue figure, CNET's average price click is $ 0.97.

$ 0.97 might be a good number to use the next time we try to predict CNET's revenue next time. For now, it seems like we still have to learn a lot about online advertising. Your thoughts and suggestions are welcomed. You can email us or post in the forum.








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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 for CNET Networks Inc. (CNET) or any other securities.

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