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What's Up With Demand Media?
$DMD Explanation? In my opinion Demand Media has many haters out there and many of them are profiting on DMD by riding the short bus. Market sentiment is also influenced by tweets, and a few of these traders in the investment community are using their social platforms to propagate this negative sentiment. When does market sentiment cross the line into manipulation? Do these "social platforms" have a obligation to keep a fair and neutral outlook for any investment? When they start moderating and censoring user content for their benefit, it makes me think about which hedge funds are really holding the strings.
Demand Media's unproven business model from eNom's registrar revenues increased 22% to $29.6 million, which I think is respectable in any book. With their market share of 8.42% of all .com domains, totaling 7,557,133 domains registered. On average eNom's annual price for .com is $6.00 compared to other United States domain registrars which is $12.70 and all others average at $21.45... Godaddy the only domain registrar with a larger market then Enom, has an average price of 11.99 for their .com domains. How long do you think it will take for eNom to surpass Godaddy by selling their domains at half the price? When it comes time to renew your domain, where do you think they will go?
When it comes to shaky accounting history, I hope someone let Charles Hilliard, President & CFO of Demand Media know.
Did anyone ever think that maybe Google depends heavily on a company like Demand Media? Who needs who more? Can you imagine the powerhouse you would have if these companies ever decide to acquire each other.. haha yes, thats funny DMD acquire GOOG. But wouldn't that be exciting!
If you are looking for what direction future profits might come from maybe you just need to look at what patents Demand Media holds.
DMD Q211 Financial Highlights:
Content & Media Revenue increased 38% to $49.8 million, compared with $36.1 million in Q210.
Traffic acquisition costs (
), which represent the portion of Content & Media revenue shared with Demand Media partners, of $2.8 million, or 5.6% of Content & Media revenue, compared with $3.1 million, or 8.5% of Content & Media revenue, in Q210.
Content & Media Revenue ex-TAC grew 42% to $47.0 million, from $33.0 million in Q210.
Registrar Revenue increased 22% to $29.6 million, compared with $24.3 million in Q210.
Investment in Intangible Assets of $15.9 million increased 45% from $11.0 million in Q210
I received a quick response from Julie MacMedan VP, Investor Relations, with my concerns of any manipulation that might be going on. They are looking into the information I sent them and will be reaching out to those social platforms. If you have any questions or concerns, maybe you should give them a try. firstname.lastname@example.org
Aug 13 12:10 PM
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