GuruNet Skyrocketing
By Richard Koman - February 4, 2005
GuruNet, the Israeli company behind Answers.com, bolted more than six points in trading today to 22.98. The stock price ended last week at 12.50, so it has almost doubled this week. What did Guru announce this week to make investors swoon so hard? Nothing. Here's the Motley Fool's take:
Investors would be wise to go back to the IPO prospectus and read through the risks this company faces. One significant one is that of IPO funding. While it is adequate for the next 12 months, the company is going to be producing operating losses. More funding, and probably share dilution, is coming. Oh, and the company has more debt than cash. Yikes.The company's content is licensed from year to year. That's hardly comforting when it is the content, as well as the search, that counts.
Why is GuruNet soaring? Investors may be looking at Google's $55.6 billion market capitalization and thinking that GuruNet's Lilliputian $93 million capitalization leaves a lot of room for growth. Maybe, but Answers.com has just been released, and its future, and the company's too, are far from certain.
Link: Is Answers.com the Next Google?
dk1153
February 4, 2005 | Permalink | Comment | Category: Search Watch | Subscribe to SVW
- Top Stories:
- Socialbrite: Helping Non-Profits Master Social Tools For Social Change
- The Pressure Is On When Every Company Is Now A Media Company...
- Vinod Khosla: How To Succeed In Silicon Valley By Bumbling And Failing...
- Saturday Post: If You Are In The Path Of A Disruptive Technology You Are Toast - Goodbye Newspaper Companies
- SDForum Garden Party Notes: Vinod Khosla is the Antichrist; Jim Clark has a size problem; Silicon Valley Trophies - Hot women and large yachts...
- Traveling Geeks Trip Next Week ... Join Us In London!
- Bitten and Smitten: Why Journalism Is Like Falling For The Wrong Person
- Year One: The Lessons Of The Intel Insider Media Advisory Program
- UberCEO Survey: CEOs Of Fortune 100 Snub Social Media - None Blog, Only 2 Twitter
- From Big Blue To Big Brown - IBM Launches Green Services In Smart Sewage And Beyond
- Keeping It Real: PR's Real-Time Web Challenge
- A Saturday Post: The Internet Devalues Everything It Touches, Anything That Can Be Digitized
Comments (1)
The answer:
Google Switches to Answer.com
"Whenever you search at Google, your keywords on the result page become links to click on. Previously, this would take you to Dictionary.com (a pop-up, dating-banners, late-90s kind of site). Now you will end up at Answers.com (which looks much more like Web 2.0)."
http://blog.outer-court.com/archive/2005-01-28-html
Posted: February 5, 2005 5:57 AM