Amid a downturn, another Internet company's initial offering catches fire
Article Abstract:
Geocities' stock price surged in its initial public offering, which also continued investor appetites for Internet company debuts. The virtual community raised its value to $1.1 billion despite its $5 million loss in 1997 revenues. Company shares, which opened at $17, more than doubled to close at $37.3125. By contrast, the steep stock market decline has especially impacted Internet companies. Geocities participates in an Internet sector that offers free real estate online and frequently organizes chat areas. These companies aim to profit through advertising on users's home pages and other pages that participate in their services. Internet portals such as Lycos represent the primary competition to virtual communities. Lycos strengthened its position by acquiring WhoWhere for $133 million in stock. WhoWhere's Anglefire service, which allows Internet users to locate phone numbers online, was the fastest-growing site in the 1st half of 1998, according to a recent Media Metrix study.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Does Amazon = 2 Barnes & Nobles?; market values may not be so crazy
Article Abstract:
Investors credit Amazon.com's business organization for creating a 179.9% increase in market value since early Jun 1998, compared to 34.3% for Barnes and Noble during that span. The online bookseller, whose per-share value is currently $119.8125, holds some advantages over mainstream retailers. Minimal inventory allows Amazon to turn over its inventory approximately 26 times annually as well as avoid exorbitant carrying costs. Another key advantage is a speedy credit card payment schedule. Amazon not only charges a customer's account upon book shipments, it also usually receives payment from credit card companies within a day. Most businesses purchase goods and supplies in advance, then wait for money from customers. These retailers constantly pay the equivalent of one to two months of sales to finance the difference. By comparison, Amazon profits from holdings its customers's money, waiting an average 46 days to reimburse its book distributors.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Does Amazon = 2 Barnes & Nobles? Market values may not be so crazy
Article Abstract:
Amazon.com's market value has shot past that of Barnes & Noble within the past six weeks. Barnes & Noble shares have gained a respectable 34.3% while that of Amazon.com has gained a phenomenal 179.9 %. Paul Sonkin, an adjunct professor of securities analysis at Columbia University, says that shareholders prefer Amazon.com because it has a better business model. Amazon enjoys a means of operating that requires minimal inventory.
Comment:
Is not appreciated as much as Amazon.com by investors
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Comment about this article or add new information about this topic:
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