Domain Stocks Pummeled
Domain name related firms get pummeled on Wall Street.
Google’s 52 week stock performance
(from Yahoo.com)
The stock market is in a free fall, and domain stocks are no exception.
Shares of Marchex (NASDAQ: MCHX) dropped 12.5% yesterday to close at $8.28. At one point it dropped to $7.75. It’s down 27.5% since the beginning of September.
Tucows (AMEX: TCX) shares continue to drop, and closed at just $.35 yesterday. The stock has been as high as $1.00 over the past 52 weeks.
Shares of Live Current Media (OTC: LIVC.ob) are a staggering 71% off their 52 week high. They closed Monday at only $1.12.
A share of Dark Blue Sea (DBS.AX), parent firm of Fabulous, can be yours for a shiny quarter. Ouch.
At Sedo’s parent firm Adlink, the stock value has been cut by 2/3rds from its 52 week high. Part of that is thanks to changes at Google for domain parking, which caused the firm to cut its growth forecast from 20% to 10% for FY 2008. I suspect it will also see sales commission declines.
Even profitable firms like Google have been slaughtered.
So does this present a buying opportunity? Part of the reason stocks like Live Current Media have been hammered is since they’re highly speculative. It’s an unprofitable firm making big bets on future earnings. It will likely need to raise more money and now is not the time to do that.
Right now people like few stocks, but the ones they like have earnings and sell consumer staples.
[Disclaimer: I own shares in some of the mentioned firms.]
