Domain values may be on the rise, but domain name related stocks are feeling the heat of stock selloffs.
As of just minutes ago, the Dow Jones Industrial Average and S&P 500 are down 15% and 16% respectively since the close of trading on October 1, 2007. Shares of many domain stocks are down more sharply, although some are withstanding the selloff.
The chart below shows intraday prices for a number of domain related stocks as I checked them this morning. It compares these prices to the close on October 1, 2007. It isn’t pretty.
Shares of domain registrar Tucows (AMEX TCX) are down 32%. Yahoo! (NASDAQ YHOO), which provides advertising feeds to major domain parking companies including Parked.com, is down 26%. Domain holding and local advertising provider Marchex (NASDAQ MCHX) continues its downward spiral, losing 24% from its $10.54 close on October 1. Australia’s Dark Blue Sea (DBX.AX), best known for its Fabulous.com business, has lost 22% of its value. Communicate.com (CMNN.ob) is off 11%, with much of the loss coming last Friday.
To be fair, several of these stocks trade below $1.00 and have low trading volume, which leads to price volatility.
Not all domain related stocks are down with the broader averages. Shares of VeriSign (NASDAQ VRSN) are down just 2%. It doesn’t hurt that it has a built in monopoly and cash flow from .com and .net domains. The company is almost certain to increase prices 7% on .com and 10% on .net again this year, leading to guaranteed cash flow increases. Google (NASDAQ GOOG) is essentially flat since October 1.
[Via - Domain Name Wire]
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