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Overture, with a market capitalization of $669 million... Looksmart, at $328 million
from an article on Google :)
That makes Overture, Alltheweb, and Altavista (bought by Overture, right?) worth only double what LookSmart is worth...that doesn't make a lot of sense to me.
If we are valuing them on their partnerships - Overture & LookSmart - they both have MSN.
But, Overture has Yahoo, Alltheweb, Altavista, etc - lots more, right?
I guess I'm just a bit confused...seems to me (what with Overture having a patent on pay per click stuff - and suing Google for it) that Overture with a projected revenue this year of $1 billion - should have a much higher market cap.
Perhaps I am rusty on my finance / accounting skills. :) Would another member kindly point out what (I think) I'm missing here?
O's Marketcap is infact 688.8 M.
Market Cap = Price of stock x number of shares outstanding.
O's market cap has taken a huge hit over the last five months. So keep in mind we are talking about a function of the stock price. It is a guage of the value of a company at a given moment in time.
Take a look at its price to earnings ratio, earning per share, earnings estimates, debt ratios, and managment team to gauge whether you think this market cap is a fair characterization of O's worth, or simply a really good buy for a competitor or a wanna-be player;)
[edited by: Chicago at 1:55 am (utc) on May 9, 2003]
Would another member kindly point out what (I think) I'm missing here?
That market cap = (stock price) X (# of shares?) :)
Unless the other factors persuade investors to bid up the price of the stock, they have no impact on market capitalization.
Of course, maybe investors are staying away from Overture because they are dumping all their money into Amazon - now THAT'S a market cap that makes no sense. Investors spend a fortune on a company with a proven history of losing money and bybass Overture, one of the few Internet companies which makes money.
But what do I know - I thought Amazon was overpriced at $8 :)
O has PE of 12. Remember when PEs used to not exist for Internet companies - still the case for AMZN.
Yea, again Mardi_Gras... they are at their mercy.
Hence the recent restructuring moves, and what likely appears to be a very high likelyhood of acquisition in 12 months or less, not because of revenues or contracts, but because of PPC technology infrastructure relative to current price.
[edited by: Chicago at 2:02 am (utc) on May 9, 2003]
Remember when PEs used to not exist for Internet companies - still the case for AMZN.
Yet they keep buying the stock...I'm not sure if the better analogy involves lemmings or moths near a bright light :)
Perhaps that is what they are missing - to make it appear to be a more valuable buy?
That was why they bought two engines, I thought, to do something in the 'free listings business' in a bigger scale.
Oh, and thanks for explaining the financials - that was what I thought market cap. meant. :)
As to the rest, I'm not in the market to buy anything, so...not going to look up all those terms you mentioned, Chicago -> but next time I need to know something perhaps I'll just shoot you a sticky, lol.
O though....
