Wednesday, June 29, 2005

Internet news/anaysis in brief (EBAY, GOOG, IACI, INSP, NFLX, OSTK, TSG, TZOO)

Continue reading...

Posted by David Jackson on June 29, 2005 at 12:01 AM in Sub-sector: Content, Sub-sector: E-tailing, Sub-sector: Travel, ticker: EBAY, ticker: GOOG, ticker: IACI, ticker: INSP, ticker: NFLX, ticker: OSTK, ticker: TSG, ticker: TZOO | Permalink | Comments (0) | TrackBack (1)

Tuesday, June 28, 2005

Datapoints from eBay Live (EBAY)

From Citigroup analyst Mark Mahaney's June 24th note to clients about eBay (ticker: EBAY):

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Posted by David Jackson on June 28, 2005 at 12:01 AM in Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (0) | TrackBack (0)

Monday, June 27, 2005

Broadway.com strikes deal with NY Times (HOLL, NYT)

Broadway.com, the online theater ticketing business owned by Hollywood Media (ticker: HOLL), announced a distribution deal with the NY Times. Quick comments and full press release:

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Posted by David Jackson on June 27, 2005 at 09:58 AM in Sub-sector: Content, Sub-sector: E-tailing, ticker: HOLL, ticker: NYT | Permalink | Comments (0) | TrackBack (0)

Friday, June 24, 2005

Will eBay's new merchant offerings be wrong-footed by Amazon, Yahoo and Google? (EBAY, AMZN, YHOO, GOOG)

eBay (ticker: EBAY) announced a service that helps merchants build online stores using technology from its Kurant acquisition. eBay will offer four versions with difffering levels of functionality and integration with eBay's auction site. All of them will charge merchants a monthly fee and commission on each sale.

But eBay may be making a mistake charging for this service. Reasons below.

Continue reading...

Posted by David Jackson on June 24, 2005 at 02:08 PM in Sub-sector: E-tailing, Sub-sector: Services, ticker: AMZN, ticker: EBAY, ticker: GOOG, ticker: SHOP, ticker: YHOO | Permalink | Comments (0) | TrackBack (0)

Wednesday, June 22, 2005

eBay discusses comparison shopping

eBay (ticker: EBAY) CFO Rajiv Dutta presented at the Deutsche Bank Securities Media Conference on June 8th. Here's what he had to say about eBay's acquisition of Shopping.com (ticker: SHOP):

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Posted by David Jackson on June 22, 2005 at 12:01 AM in Conf call quotes, Sub-sector: E-tailing, Sub-sector: Search, ticker: EBAY | Permalink | Comments (0) | TrackBack (0)

Friday, June 17, 2005

Netflix discusses downloadable movies (NFLX)

Barry McCarthy, CFO of online movie rental company Netflix (ticker: NFLX), presented at the Morgan Stanley Small Cap Conference on June 15th. (That means that Morgan Stanley hosted small cap companies, not that Morgan Stanley is becoming a small cap stock...) Here's his argument why DVD rentals will not be displaced by movie downloading:

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Posted by David Jackson on June 17, 2005 at 12:28 AM in Conf call quotes, Sub-sector: E-tailing, Sub-sector: Services, ticker: NFLX | Permalink | Comments (8) | TrackBack (0)

Thursday, June 16, 2005

Amazon neutralized (AMZN)

Citigroup analyst Mark Mahaney re-initiated coverage report of Amazon on June 8th. Here's the section of his report summarizing and justifying his "Hold" rating. Many investors will agree with his thesis; most fund managers seem to be cautious on AMZN, which paradoxically is a bullish sign...

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Posted by David Jackson on June 16, 2005 at 12:05 AM in Sub-sector: E-tailing, ticker: AMZN | Permalink | Comments (0) | TrackBack (0)

Friday, June 10, 2005

Red Envelope on e-commerce strategy and comparison shopping (REDE)

Online gift retailer Red Envelope's (ticker: REDE) Q1 numbers and guidance disappointed the Street (as you'll see from the chart below). But CEO Alison May had interesting things to say on her May 17th conference call about Red Envelope's strategy to counter price competition on the Internet. Her remarks are now even more relevant after the announced acquisitions of comparison shopping sites Shopping.com and Shopzilla. Extracts:

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Posted by David Jackson on June 10, 2005 at 12:01 AM in Conf call quotes, Sub-sector: E-tailing, ticker: REDE | Permalink | Comments (0) | TrackBack (0)

Thursday, June 09, 2005

GSI Commerce (GSIC) discusses e-commerce

GSI Commerce (ticker: GSIC) provides infrastructure and services for offline retailers who want to sell via the Web. CEO Michael Rubin and CFO Jordan Copland discussed their business on the company's Q1 conference call April 27th. Belated (but interesting) extracts:

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Posted by David Jackson on June 9, 2005 at 09:27 AM in Conf call quotes, Sub-sector: E-tailing, ticker: GSIC | Permalink | Comments (0) | TrackBack (0)

Wednesday, June 08, 2005

E.W Scripps discusses comparison shopping (SSP, SHOP)

After E.W Scripps' (ticker: SSP) announcement of its intention to purchase comparison shopping company Shopzilla (formerly Bizrate), CEO Ken Lowe and CFO Joe NeCastro hosted a conference call with analysts. Interesting reading, given eBay's (ticker: EBAY) prior announcement to acquire competitor Shopping.com (ticker: SHOP). Extracts:

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Posted by David Jackson on June 8, 2005 at 05:00 PM in Conf call quotes, Sub-sector: E-tailing, Sub-sector: Search, ticker: EBAY, ticker: SHOP | Permalink | Comments (0) | TrackBack (2)

Chairman and Chief Product Officer of Shopzilla on Shopzilla vs Shopping.com (SHOP)

Farhad Mohit is the Chairman and Chief Product Officer of Shopzilla, a comparison shopping search service that competes with Shopping.com (ticker: SHOP). Here are his thoughts in response to Scripps-Shopzilla deal shows eBay-SHOP deal too cheap? (published yesterday morning on the The Internet Stock Blog) which argued that eBay (ticker: EBAY) may be forced to raise its bid for SHOP:

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Posted by David Jackson on June 8, 2005 at 12:02 AM in Sub-sector: E-tailing, Sub-sector: Search, ticker: EBAY, ticker: SHOP | Permalink | Comments (2) | TrackBack (3)

Tuesday, June 07, 2005

Scripps-Shopzilla deal shows eBay-SHOP deal too cheap?

Media company E.W. Scripps yesterday announced that it would purchase privately-held Shopzilla for $525 million in cash. Meanwhile, Shopping.com's (ticker: SHOP) stock yesterday traded above the $21 level at which eBay (ticker: EBAY) said it would acquire the company. Are the two related? Analysis and quick comments:

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Posted by David Jackson on June 7, 2005 at 08:51 AM in Sub-sector: E-tailing, Sub-sector: Search, ticker: CNET, ticker: EBAY, ticker: GOOG, ticker: IACI, ticker: MSFT, ticker: NYT, ticker: OSTK, ticker: SHOP, ticker: TWX, ticker: YHOO | Permalink | Comments (2) | TrackBack (0)

Monday, June 06, 2005

What eBay could learn from Craigslist (EBAY)

Randall Stross' article (free registration required) in the Sunday NY Times about eBay (ticker: EBAY) and Craigslist is worth reading. This paragraph alone makes it worthwhile:

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Posted by David Jackson on June 6, 2005 at 10:49 AM in Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (1) | TrackBack (0)

Thursday, June 02, 2005

Is Amazon the loser from the EBAY-SHOP deal? (AMZN, EBAY, SHOP)

Yes. Here's why:

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Posted by David Jackson on June 2, 2005 at 03:13 PM in Sub-sector: E-tailing, Sub-sector: Search, ticker: AMZN, ticker: EBAY, ticker: SHOP | Permalink | Comments (2) | TrackBack (1)

Shopping.com acquisiton a sign of eBay weakness? (SHOP, EBAY)

So says Pacific Growth Equities analyst Derek Brown in a note to clients today:

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Posted by David Jackson on June 2, 2005 at 02:35 PM in Sub-sector: E-tailing, Sub-sector: Search, ticker: EBAY, ticker: SHOP | Permalink | Comments (1) | TrackBack (0)

eBay gets a good deal on Shopping.com? (EBAY and SHOP)

American Technology Research analyst David Edwards thinks that eBay (ticker: EBAY) is buying Shopping.com (ticker: SHOP) at a 20% discount to fair value. He writes (in a note to clients):

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Posted by David Jackson on June 2, 2005 at 01:09 PM in Sub-sector: E-tailing, Sub-sector: Services, ticker: EBAY, ticker: SHOP | Permalink | Comments (0) | TrackBack (0)

Wednesday, June 01, 2005

Sell-side commentary on Netflix-Walmart alliance (NFLX, WMT)

Pacific Growth Equities analyst Derek Brown sent the following in a note to clients on May 20th about Netflix' (ticker: NFLX) alliance with Walmart.com:

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Posted by David Jackson on June 1, 2005 at 01:36 PM in Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (0)

Thursday, May 26, 2005

Jeff Matthews on Overstock.com's (OSTK) diamond deal

Hedge fund manager Jeff Matthews of RAM Partners thinks that Overstock.com's (ticker: OSTK) diamond deal is a little fishy. Here's what he writes:

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Posted by David Jackson on May 26, 2005 at 12:22 AM in Sub-sector: E-tailing, ticker: OSTK | Permalink | Comments (1) | TrackBack (0)

Jeff Matthews asks "Is Overstock.com (OSTK) really in the close-out business?"

Overstock.com (ticker: OSTK) is actually just another reseller of regular imported merchandise, according to Jeff Matthews, general partner of hedge fund RAM Partners. Here's his argument:

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Posted by David Jackson on May 26, 2005 at 12:18 AM in Sub-sector: E-tailing, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

Wednesday, May 25, 2005

The finance-based economy spreads to the Internet (AMZN)

Numerous commentators have pointed out that a record percentage of S&P 500 profits is now accounted for by finance, a risky situation in an environment of rising interest rates. This isn't just due to financial companies, but also purportedly non-financial companies like GE and GM that earn some (or most) of their income from financial activities. Well, here's news for Internet investors:

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Posted by David Jackson on May 25, 2005 at 09:47 AM in Sub-sector: E-tailing, ticker: AMZN | Permalink | Comments (0) | TrackBack (0)

Thursday, May 19, 2005

Walmart (WMT) teams up with Netflix (NFLX); Blockbuster Online (BBI) tests higher prices

David Strahlberg at The Media Stock Blog writes:

Walmart (ticker: WMT) has ended its foray into the online DVD rental business and is partnering with Netflix (ticker: NFLX).  Separately, Blockbuster (ticker: BBI) is testing higher prices.  Here are some details:

Continue reading...

Posted by David Jackson on May 19, 2005 at 10:11 AM in Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (0)

Wednesday, May 18, 2005

Netflix' (NFLX) Blockbuster relief

Netflix's stock (ticker: NFLX) has benefited from the perception that that Blockbuster may pull out of the online DVD rental market, sparked by Carl Icahn's election to Blockbuster's Board. Reaction from Pacific Growth Research analyst Derek Brown's May 9th note to clients:

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Posted by David Jackson on May 18, 2005 at 10:28 AM in Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (0)

Tuesday, May 17, 2005

FindProfit covers The Knot.com (KNOT)

FindProfit.com (subscription required) sent an alert to clients May 9th advising them to cover their short position in The Knot.com (ticker: KNOT). It said:

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Posted by David Jackson on May 17, 2005 at 05:21 PM in Sub-sector: Content, Sub-sector: E-tailing, ticker: KNOT | Permalink | Comments (0) | TrackBack (0)

Hollywood Media (HOLL) discusses BroadwayTickets.com (1Q05 conf call quotes)

Hollywood Media's stock (ticker: HOLL) has fallen dramatically since the company issued an 8-K stating that it was switching auditors and that it forecast a larger than expected loss for the quarter. Meanwhile, here's what CEO Mitchell Rubenstein said on the company's Q1 earnings conference call about HOLL's Broadway tickets business:

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Posted by David Jackson on May 17, 2005 at 02:45 PM in Conf call quotes, Sub-sector: E-tailing, ticker: HOLL | Permalink | Comments (0) | TrackBack (0)

Wednesday, May 11, 2005

Blue Nile (NILE) discusses online marketing costs (Q1 conf call quotes)

Mark Vadon, CEO of online jewelry retailer Blue Nile (ticker: NILE), discussed online advertising costs and marketing on his May 4th Q1 earnings conference call. Key quotes:

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Posted by David Jackson on May 11, 2005 at 01:47 PM in Conf call quotes, Sub-sector: E-tailing, ticker: NILE | Permalink | Comments (0) | TrackBack (0)

Provide Commerce (PRVD) explains why it missed and lowered guidance (Q1 conf call quotes)

Provide Commerce (ticker: PRVD), an online retailer whose main business unit is ProFlowers.com, missed its prior guiance and lowered guidance going forward. Some of the factors responsible - rising online ad prices and increased shipping costs - will likely hit other e-tailers. Here's how CEO Bill Strauss explained the misses on his April 28th conference call:

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Posted by David Jackson on May 11, 2005 at 01:27 PM in Conf call quotes, Sub-sector: E-tailing, ticker: PRVD | Permalink | Comments (0) | TrackBack (0)

Tuesday, May 10, 2005

Sell-side reaction to Blue Nile's (NILE) earnings

From American Technology Research analyst Mark Mahaney's note to clients reacting to Blue Nile's (ticker: NILE) Q1 earnings:

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Posted by David Jackson on May 10, 2005 at 12:53 AM in Earnings results, Sub-sector: E-tailing, ticker: NILE | Permalink | Comments (0) | TrackBack (0)

Wednesday, May 04, 2005

Drugstore.com discusses focus and pricing in e-tailing (1Q05 conf call quotes)

Drugstore.com (ticker: DSCM) CEO Dawn Lepore outlined his strategy on the company's Q1 conference call (April 28th). The plan: focus marketing investment on higher growth segments and reduce emphasis on products suffering from acute price competition. The comments are significant for all e-tailers and investors in e-commerce stocks, as they illustrate one approach to trends that are impacting the entire sector -  increased price competition and rising marketing costs.

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Posted by David Jackson on May 4, 2005 at 08:58 AM in Conf call quotes, Sub-sector: E-tailing, ticker: DSCM | Permalink | Comments (1) | TrackBack (0)

Tuesday, May 03, 2005

Should a sell-side analyst call Netflix (NFLX) 'a worthless piece of crap'?

From The Media Stock Blog: The blog site Thomas Hawk's Digital Connection recently posted a fascinating dialogue between Davis Freeberg and Wedbush Morgan analyst Michael Pachter. Freeberg questioned Pachter's Sell rating on Netflix (ticker: NFLX), while recommending that investors buy Blockbuster (ticker: BBI) and Movie Gallery (ticker: MOVI). Pachter's response and the 26 (and counting) comments that follow are interesting, amusing and sometimes informative.

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Posted by David Jackson on May 3, 2005 at 03:07 PM in Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (1) | TrackBack (0)

Thursday, April 28, 2005

eDiets beats EPS estimate, but marketing spend still a problem (1Q05 earnings results)

eDiets (ticker: DIET) met the consensus revenue estimate but beat the EPS number by a penny. Details and a quick comment:

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Posted by David Jackson on April 28, 2005 at 04:51 PM in Earnings results, Sub-sector: E-tailing, ticker: DIET | Permalink | Comments (0) | TrackBack (0)

Stamps.com beats and raises (1Q05 earnings results)

Stamps.com (ticker: STMP) announced Q1 results that beat consensus revenue and EPS estimates, and raised guidance for Q2 and the year. Details:

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Posted by David Jackson on April 28, 2005 at 04:22 PM in Earnings results, Sub-sector: E-tailing, ticker: STMP | Permalink | Comments (0) | TrackBack (0)

Sell-side reaction to AMZN's earnings

American Technology Research analyst Mark Mahaney sent a note to clients outlining his reaction to Amazon's (ticker: AMZN) first quarter results. Key excerpts:

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Posted by David Jackson on April 28, 2005 at 01:01 AM in Earnings results, Sub-sector: E-tailing, ticker: AMZN | Permalink | Comments (0) | TrackBack (0)

Wednesday, April 27, 2005

GSI Commerce beats and raises (1Q05 earnings results)

GSI Commerce (ticker: GSIC) beat revenue and EPS estimates for Q1 and raised guidance for Q2.  Details:

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Posted by David Jackson on April 27, 2005 at 05:03 PM in Earnings results, Sub-sector: E-tailing, Sub-sector: Infrastructure, ticker: GSIC | Permalink | Comments (0) | TrackBack (0)

Overstock switching auction marketing from TV to paid search

Overstock.com (ticker: OSTK) CEO Patrick Byrne discusses his company's auction business on his blog. eBay (ticker: EBAY) investors should read his comments about commitment to the auction business; and Google (ticker: GOOG) investors should read his remarks about switching marketing dollars from TV ads to paid search.

Here's the text (republished in full with the understanding that Mr Byrne would like his views made known):

Continue reading...

Posted by David Jackson on April 27, 2005 at 12:08 AM in Sub-sector: Advertising, Sub-sector: E-tailing, Sub-sector: Search, ticker: EBAY, ticker: GOOG, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

Tuesday, April 26, 2005

Amazon on paid search and comparison shopping (1Q05 conf call quotes)

Amazon.com (ticker: AMZN) CFO Tom Szkutak and CEO Jeff Bezos were asked on their Q1 conference call about Amazon's reliance on advertising for traffic and the price impact of comparison shopping engines. Here are their answers:

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Posted by David Jackson on April 26, 2005 at 11:08 PM in Conf call quotes, Sub-sector: E-tailing, Sub-sector: Search, ticker: AMZN | Permalink | Comments (0) | TrackBack (0)

Amazon's growth slows and expenses rise; stock down

Amazon.com (ticker: AMZN) reported Q1 revenue growth of 22% excluding exchange-rate effects, the slowest in two years and a marked decline from Q4's 26% rate. And operating expenses rose by two full percentage points, clobbering the company's profitability. The stock fell by about 3.5% in late trading after the results were published. Details and analysis:

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Posted by David Jackson on April 26, 2005 at 09:38 PM in Earnings results, Sub-sector: E-tailing, ticker: AMZN | Permalink | Comments (0) | TrackBack (0)

Sell-side reaction to OSTK earnings

Pacific Growth Equities analyst Derek Brown sent a note to clients in reaction to Overstock's (ticker: OSTK) Q1 earnings results. Key excerpts:

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Posted by David Jackson on April 26, 2005 at 10:41 AM in Earnings results, Sub-sector: E-tailing, ticker: OSTK | Permalink | Comments (1) | TrackBack (0)

Monday, April 25, 2005

Sell-side reaction to Netflix results

Pacific Growth Equities analyst Derek Brown sent a note to clients outlining his reaction to Netfix' (ticker: NFLX) earnings results. An extract:

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Posted by David Jackson on April 25, 2005 at 12:03 AM in Earnings results, Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (1) | TrackBack (0)

Friday, April 22, 2005

Overstock misses, stock down 10% (1Q05 earnings)

Overstock (ticker: OSTK) missed consensus EPS estimates due to a massive rise in operating expenses. By early afternoon the stock was down by over 10%. Details and comments below:

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Posted by David Jackson on April 22, 2005 at 02:54 PM in Earnings results, Sub-sector: E-tailing, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

Netflix comments on increased marketing spend (1Q05 conf call quotes)

Netflix CEO Reed Hastings provided lower than expected guidance for Q2 and the remainder of 2005 on his conference call, and the stock plunged in response. Here's his justification for increasing Netflix' spending on marketing and emphasising lower priced rental plans:

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Posted by David Jackson on April 22, 2005 at 01:43 PM in Conf call quotes, Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (0)

Netflix stock slammed by low guidance (1Q05 earnings)

Netflix' stock (ticker: NFLX) fell about 8% in trading the morning after the company reported Q1 results that beat estimates but provided lower than consensus revenue guidance for Q2. Details:

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Posted by David Jackson on April 22, 2005 at 01:25 PM in Earnings results, Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (0)

Sell-side reaction to eBay earnings

From American Technology Research analyst Mark Mahaney's note to clients:

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Posted by David Jackson on April 22, 2005 at 12:16 PM in Earnings results, Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (0) | TrackBack (0)

Thursday, April 21, 2005

E*Trade on online brokerage industry consolidation (quotes from 1Q05 conf call)

Until now, Ameritrade (ticker: AMTD) has been the key consolidator in the online brokerage industry. E*Trade (ticker: ET) was reportedly in talks with TD Waterhouse, but they fell apart. E*Trade CEO Mitch Caplan outlined the case for consolidation on his Q1 earnings call:

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Posted by David Jackson on April 21, 2005 at 12:21 AM in Conf call quotes, Sub-sector: E-tailing, ticker: ET | Permalink | Comments (0) | TrackBack (0)

eBay on paid search (quotes from the 1Q05 conf call)

eBay (ticker: EBAY) CFO  Rajiv Dutta  went out of his way to comment on the paid search market on the company's Q1 earnings results conference call:

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Posted by David Jackson on April 21, 2005 at 12:03 AM in Conf call quotes, Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (1) | TrackBack (1)

eBay beats numbers but growth is slowing (1Q05 earnings results)

eBay (ticker: EBAY) beat consensus estimates for revenue and EPS, and turned in a healthy year-over-year revenue growth rate of 36%. But eBay's growth is slowing. Details and quick comments:

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Posted by David Jackson on April 21, 2005 at 12:01 AM in Earnings results, Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (0) | TrackBack (0)

Tuesday, April 12, 2005

Become.com launches, Shopping.com wins AOL France

Three developments in the comparison shopping space:

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Posted by David Jackson on April 12, 2005 at 04:18 AM in Sub-sector: E-tailing, ticker: CNET, ticker: GOOG, ticker: IACI, ticker: SHOP, ticker: VCLK, ticker: YHOO | Permalink | Comments (1) | TrackBack (2)

What is Hollywood Media's stake in MovieTickets.com worth?

Hollywood Media (ticker: HOLL) owns about 26% of MovieTickets.com. What's it worth? Here's an extract from the note sent by Ferris, Baker Watts analyst Murray Arenson to clients:

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Posted by David Jackson on April 12, 2005 at 12:51 AM in Sub-sector: E-tailing, ticker: HOLL | Permalink | Comments (0) | TrackBack (0)

Friday, April 08, 2005

Hollywood Media reveals MovieTickets.com numbers

Hollywood Media (ticker: HOLL) published its 10-K, in which for the first time it provided revenue and income numbers for MovieTickets.com. Hollywood Media owns a minority 26% stake in MovieTickets.com, so its revenues and income are not included in HOLL's numbers. Until now there has been no disclosure of the actual numbers. Here are the relevant extracts from the 10-K, including revenue and income for MovieTickets.com for 2002-2004:

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Posted by David Jackson on April 8, 2005 at 12:02 AM in Sub-sector: E-tailing, ticker: HOLL | Permalink | Comments (0) | TrackBack (0)

Thursday, April 07, 2005

Sell-side reaction to Shopping.com CEO change

Goldman Sachs analyst Anthony Noto and AmTech Research analyst Mark Mahaney sent notes to clients interpreting Shopping.com's (ticker: SHOP) sudden and unexplained switch of CEO. Extracts:

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Posted by David Jackson on April 7, 2005 at 02:02 PM in Sub-sector: E-tailing, ticker: SHOP | Permalink | Comments (0) | TrackBack (0)

What's happening at Shopping.com?

Shopping.com (ticker: SHOP) issued an enigmatic press release immediately after market close announcing that CEO Dan Ciporin is being replaced by an existing board member, without providing any explanation. It also said the company will slightly exceed its guidance for Q1. The stock traded up $0.02 in late trading. Analysis:

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Posted by David Jackson on April 7, 2005 at 12:01 AM in Earnings results, Sub-sector: E-tailing, ticker: SHOP | Permalink | Comments (0) | TrackBack (0)

Thursday, March 31, 2005

Red Envelope (REDE) stamped by warning, but more trouble to come?

Online gift retailer Red Envelope was crushed (or perhaps crumpled) in trading on Tuesday after warning of an earnings shortfall. The stock closed at $11.60 Monday before the announcement, opened at $8.20 Tuesday morning, and only recovered slightly to $8.73 by close Wednesday. Details from the pre-announcement, and analysis that suggests that there may be more bad news to come:

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Posted by David Jackson on March 31, 2005 at 06:43 AM in Earnings results, Sub-sector: E-tailing, ticker: REDE | Permalink | Comments (0) | TrackBack (0)

Netflix (NFLX) passes 3 million subscriber mark; adds 400,000 subs in Q1

Netflix (ticker: NFLX) announced that it now has more than three million subscribers, after adding 400,000 subs during the first quarter of 2005. David Strahlberg of The Media Stock Blog writes (full permission granted):

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Posted by David Jackson on March 31, 2005 at 12:19 AM in Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (1)

Tuesday, March 29, 2005

Overstock.com getting traction against eBay?

Pacific Growth Equities analyst Derek Brown thinks that Overstock is beginning to get traction in its auction business. He sent a note outlining the evidence to clients, including the following paragraphs:

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Posted by David Jackson on March 29, 2005 at 01:59 PM in Sub-sector: E-tailing, ticker: EBAY, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

Friday, March 25, 2005

Sell-side reaction to HOLL's quarter

Ferris, Baker Watts analyst Murray Arenson wrote the following to clients outlining and reacting to Hollywood Media's 4Q '04 earnings results:

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Posted by David Jackson on March 25, 2005 at 12:53 AM in Earnings results, Sub-sector: Content, Sub-sector: E-tailing, ticker: HOLL | Permalink | Comments (0) | TrackBack (0)

Hollywood Media discusses Broadway.com (quotes from the 4Q04 conf call)

Hollywood Media (ticker: HOLL) CEO Mitch Rubenstein discussed his company's theater tickets business on his 4Q04 earnings conference call. Hollywood's theater ticketing business has two channels: (1) a consumer unit that offers online sales at Broadway.com and telephone sales at 1-800-Broadway, and (2) a group sales unit. The growth driver is the consumer unit; its sales were up 78% year over year for January plus February. Here are Mr Rubenstein's comments:

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Posted by David Jackson on March 25, 2005 at 12:31 AM in Conf call quotes, Sub-sector: E-tailing, ticker: HOLL | Permalink | Comments (0) | TrackBack (0)

Thursday, March 24, 2005

OSTK on the intersection of e-commerce and development

A reader pointed out this description of the origins and rationale behind Overstock.com's (ticker: OSTK) Worldstock store, which sells hand crafted goods from developing countries. It's thought-provoking and inspiring. For that reason I've reproduced it in its entirety, assuming that Patrick Byrne would welcome the added publicity. It's worth taking the time to read.

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Posted by David Jackson on March 24, 2005 at 06:17 AM in Sub-sector: E-tailing, ticker: OSTK | Permalink | Comments (2) | TrackBack (1)

Tuesday, March 22, 2005

IAC - "Incoherent Acquisitions Continue"?

IAC's stock (ticker: IACI) reacted poorly to the Ask Jeeves acquisition. After closing at $22.29 on Friday, the stock fell to $21.63 by the end of trading yesterday. Why? Because Barry Diller's justifications for the acquisition are unconvincing.

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Posted by David Jackson on March 22, 2005 at 09:12 AM in Sub-sector: E-tailing, Sub-sector: Search, Sub-sector: Travel, ticker: ASKJ, ticker: IACI | Permalink | Comments (5) | TrackBack (0)

Monday, March 14, 2005

Is GSIC immune to rising PPC ad prices?

A key challange for most Internet retailers is the rise in pay-per-click (PPC) ad prices. The rise in PPC ad prices is having a negative effect e-tailers, even on companies like EBAY and AMZN that you would have thought had strong brands and didn't need to attract traffic through PPC ads.

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Posted by David Jackson on March 14, 2005 at 07:20 AM in Sub-sector: E-tailing, ticker: GSIC | Permalink | Comments (0) | TrackBack (0)

FLWS acquires multi-channel cookie retailer

1-800-Flowers.com (ticker: FLWS) signed an agreement to acquire multi-channel cookie retailer Cheryl & Co. for $40 million in cash. Details and quick comments:

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Posted by David Jackson on March 14, 2005 at 06:34 AM in Sub-sector: E-tailing, ticker: FLWS | Permalink | Comments (0) | TrackBack (0)

Friday, March 11, 2005

eBay #1 in China? No, though Meg Whitman claims "yes".

eBay (ticker: EBAY) CEO Meg Whitman discussed the company's Chinese subsidiary eBay Eachnet and the competitive environment in China at its Analyst Day in February. Here are excerpts from her comments followed by a discussion of Chinese online auction competitor Taobao from The China Stock Blog:

Continue reading...

Posted by David Jackson on March 11, 2005 at 12:01 AM in Conf call quotes, Sub-sector: China, Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (0) | TrackBack (0)

Thursday, March 10, 2005

Netflix - NFLX - stretching?

Six minutes ago online movie rental company Netflix sent the following email to its subscribers:

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Posted by David Jackson on March 10, 2005 at 01:04 PM in Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (1)

Movietickets.com takes share from Fandango

ComScore MediaMetrix data for February shows that Movietickets.com, partially owned by Hollywood Media (ticker: HOLL) is outgrowing competitor Fandango:

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Posted by David Jackson on March 10, 2005 at 10:36 AM in Sub-sector: E-tailing, ticker: HOLL | Permalink | Comments (0) | TrackBack (1)

OSTK focuses ads on competition with EBAY

Overstock.com (ticker: OSTK) is now focusing its advertising on attracting buyers to its auction site. eBay (ticker: EBAY) investors take note. The rationale is explained in a letter on Overstock's web site to its current auction sellers:

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Posted by David Jackson on March 10, 2005 at 12:01 AM in Sub-sector: E-tailing, ticker: EBAY, ticker: OSTK | Permalink | Comments (2) | TrackBack (0)

Wednesday, March 09, 2005

Where was Netflix?

David Strahlberg summarizes Blockbuster's Q4 results for The Media Stock Blog. He points that "Netflix (ticker: NFLX) was not mentioned a single time during the call". Netflix investors take note: here are the stats about Blockbuster Online:

Continue reading...

Posted by David Jackson on March 9, 2005 at 10:23 AM in Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (0)

Tuesday, March 08, 2005

IACI on its acquisition of Cornerstone (quotes from investor conf)

IAC (ticker: IACI) CFO Tom McInerney discussed the rationale for IAC's acquisition of catalog and web retailer Cornerstone in his presentation to the Bear Stearns Annual Media Conference:

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Posted by David Jackson on March 8, 2005 at 10:17 AM in Conf call quotes, Sub-sector: E-tailing, ticker: IACI | Permalink | Comments (0) | TrackBack (0)

eCommerce and content developments in brief

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Posted by David Jackson on March 8, 2005 at 08:20 AM in Sub-sector: Advertising, Sub-sector: Content, Sub-sector: E-finance, Sub-sector: E-tailing, ticker: AMZN, ticker: BFLY, ticker: BOFI, ticker: MACR, ticker: NTBK, ticker: YHOO | Permalink | Comments (0) | TrackBack (0)

Monday, March 07, 2005

WeightWatchers.com more profitable and growing faster than eDiets - DIET

Weight Watchers International CEO Linda Huett provided data about WeightWatchers.com on her Q4 '04 earnings conference call. These are important stats for investors in eDiets (ticker: DIET) and those tracking eCommerce growth generally. Here are the relevant quotes, plus comments:

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Posted by David Jackson on March 7, 2005 at 08:00 AM in Conf call quotes, Earnings results, Sub-sector: E-tailing, ticker: DIET | Permalink | Comments (0) | TrackBack (0)

Thursday, March 03, 2005

Does room for improvement for IBUY suggest future profit upside or current management weakness?

IBuyDigital.com's S-1 filing highlighted the company's narrow profit margins. Soon after the analysis of IBUY's filing was published, I was sent a suggestion for how IBUY can immediately improve its profit margins.

Which begs the question: is the obvious room for improvement in IBUY's margins bullish for the stock (when it starts trading), or an indicator that the current management is weak? Or both?

Here's the suggestion:

Continue reading...

Posted by David Jackson on March 3, 2005 at 07:23 AM in Sub-sector: E-tailing, ticker: IBUY | Permalink | Comments (0) | TrackBack (0)

Wednesday, February 23, 2005

Amazon - AMZN - chief scientist leaves for private company

Amazon's (ticker: AMZN) chief scientist, Dr. Andreas Weigend, has jumped ship for privately-held Poindexter Systems. Poindexter is developing behavioural advertising technology; Wiegend led Amazon's development of predictive models used for recommendations and cross-selling.

Continue reading...

Posted by David Jackson on February 23, 2005 at 12:03 AM in Sub-sector: Advertising, Sub-sector: E-tailing, ticker: AMZN | Permalink | Comments (0) | TrackBack (0)

Tuesday, February 22, 2005

Should Bluefly - BFLY - get swatted? (4Q04 earnings)

Bluefly, an online retailer of designer clothing, reported results for the fourth quarter. Sales rose a measly 3.7%, and the rise in gross margin was more than offset by dividend payments to preferred stock holders. But the stock actually rose by almost 4% in subsequent trading.

Continue reading...

Posted by David Jackson on February 22, 2005 at 12:22 PM in Earnings results, Sub-sector: E-tailing, ticker: BFLY | Permalink | Comments (2) | TrackBack (0)

Are merchants leaving Shopping.com (SHOP)?

A comment posted on a message board by a Shopping.com merchant suggests that SHOP's recent price rise might be driving away business. Here's what he writes, and then three quick comments:

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Posted by David Jackson on February 22, 2005 at 12:03 PM in Sub-sector: E-tailing, ticker: SHOP | Permalink | Comments (3) | TrackBack (0)

The future of comparison shopping

Sean O'Rourke, author of the Organized Shopping Blog, writes his thougths and questions on the future of comparison shopping. This is a must-read for anyone interested in Shopping.com, Google's Froogle, Yahoo Shopping, MSN Shopping, and ValueClick's entry into comparison shopping. Here are his thoughts in full:

Continue reading...

Posted by David Jackson on February 22, 2005 at 08:52 AM in Sector Themes/Outlook, Sub-sector: E-tailing, ticker: GOOG, ticker: MSFT, ticker: SHOP, ticker: VCLK, ticker: YHOO | Permalink | Comments (1) | TrackBack (1)

Surprise stock implications of wealthy online user growth

Nielsen/NetRatings reports (PDF) that the fastest growing segment of Internet users by income during 2004 was the top group - those with household incomes over $150,000. Details of the Nielsen/NetRatings report, then analysis including stock implications:

Continue reading...

Posted by David Jackson on February 22, 2005 at 12:05 AM in Sector Themes/Outlook, Sub-sector: E-finance, Sub-sector: E-tailing, Sub-sector: Travel, ticker: AMZN, ticker: EBAY, ticker: IACI, ticker: NILE, ticker: PRVD, ticker: REDE, ticker: SCH, ticker: TSCM, ticker: TSG, ticker: TWX, ticker: YHOO | Permalink | Comments (1) | TrackBack (3)

Microsoft launches MSN Shopping beta

Microsoft launched the beta of MSN Shopping, with strengthened comparison shopping tools. Competitors: Yahoo! Shopping, Shopping.com, Google's Froogle and ValueClick. Microsoft's Andrew Ma asked for feedback, and Sean O'Rourke provided it, concluding that:

Continue reading...

Posted by David Jackson on February 22, 2005 at 12:03 AM in Sub-sector: E-tailing, ticker: GOOG, ticker: MSFT, ticker: SHOP, ticker: VCLK, ticker: YHOO | Permalink | Comments (0) | TrackBack (1)

Sunday, February 20, 2005

Netflix (NFLX) on The Long Tail in movie rentals (quotes from the Citigroup presentation)

Netflix has revolutionized the movie rental business by offering a far larger choice of movies than is available from a regular rental store; as a result, a larger proportion of Netflix' rentals are "back catalog" rentals as opposed to new releases. Netflix CEO Reed Hastings discussed the economics ofcatalog versus new release movie rentals at his presentation at the Smith Barney Citigroup investors conference. Here's what he said:

Continue reading...

Posted by David Jackson on February 20, 2005 at 01:22 PM in Conf call quotes, Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (3) | TrackBack (0)

Thursday, February 17, 2005

IAC (IACI) on local online ads and services (quotes from the conf call)

IAC (ticker: IACI) CEO Barry Diller talked on his Q4 results conference call about all of IAC's businesses. Here's what he said about local advertising and services:

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Posted by David Jackson on February 17, 2005 at 08:29 PM in Conf call quotes, Sub-sector: Advertising, Sub-sector: Content, Sub-sector: E-tailing, Sub-sector: Services, ticker: IACI | Permalink | Comments (0) | TrackBack (0)

Stamps.com (STMP) on customizable postage stamps (quotes from the conf call)

Stamps.com (ticker: STMP) CEO Ken McBride discussed his company's "PhotoStamp" trial, which allows customers to create stamps from their own uploaded images. Here's what he said:

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Posted by David Jackson on February 17, 2005 at 05:45 PM in Conf call quotes, Sub-sector: E-tailing, ticker: STMP | Permalink | Comments (0) | TrackBack (0)

Stamps.com (STMP) beats and raises, stock up 16% (4Q04 earnings)

Stamps.com announced that Q4 results beat consensus estimates of both EPS and revenue, and that guidance would be above current consensus. The stock rose by about 16.5% in subsequent trading. Details and quick comments:

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Posted by David Jackson on February 17, 2005 at 05:41 PM in Earnings results, Sub-sector: E-tailing, ticker: STMP | Permalink | Comments (0) | TrackBack (0)

Disposal of the disposable DVD?

Home Media Retailing reports that Walt Disney's (DIS) Buena Vista unit is ending its trial of disposable DVDs, called EZ-Ds.

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Posted by David Jackson on February 17, 2005 at 05:03 PM in Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (0)

GSI Commerce (GSIC) discusses e-commerce outsourcing (quotes from the conf call)

GSI Commerce (ticker: GSIC) CEO Michael Rubin discussed his company's strategy as an outsourced provider of e-commerce infrastructure on his conference call. He said:

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Posted by David Jackson on February 17, 2005 at 01:02 PM in Conf call quotes, Sub-sector: E-tailing, ticker: GSIC | Permalink | Comments (0) | TrackBack (0)

GSI Commerce (GSIC) beats, stock up slightly in a down market (4Q04 earnings)

GSI Commerce (ticker: GSIC) beat the consensus EPS estimate by a penny, and its stock rose slightly in subsequent trading. Details of the results and a quick comment:

Continue reading...

Posted by David Jackson on February 17, 2005 at 12:51 PM in Earnings results, Sub-sector: E-tailing, ticker: GSIC | Permalink | Comments (0) | TrackBack (0)

eCost compares itself to Overstock.com (quotes from the conf call)

Here's how eCost CEO Adam Shaffer compared his company's strategy to Overstock's during his Q4 earnings conference call:

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Posted by David Jackson on February 17, 2005 at 12:51 AM in Conf call quotes, Sub-sector: E-tailing, ticker: ECST, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

eCost (ECST) falls 9% in late trading after reporting 4Q04 results

eCost, the online retailer of computer hardware and software that is expanding into other retail categories, announced Q4 results. EPS of a one cent loss missed consensus estimates by a penny, though revenue beat consensus. Details and a quick comment:

Continue reading...

Posted by David Jackson on February 17, 2005 at 12:35 AM in Earnings results, Sub-sector: E-tailing, ticker: ECST | Permalink | Comments (0) | TrackBack (0)

Wednesday, February 16, 2005

The Knot (KNOT.OB) on customer acquisition costs plus the online dating market (quotes from the conf call)

David Liu, CEO of the The Knot, discusses his company's marketing strategy and the rationale for its recent purchase of GreatBoyfriends LLC, an online dating company that runs greatboyfriends.com and greatgirlfriends.com. Only three analysts were on the call:

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Posted by David Jackson on February 16, 2005 at 01:33 PM in Conf call quotes, Sub-sector: Content, Sub-sector: E-tailing, ticker: KNOT | Permalink | Comments (0) | TrackBack (1)

The Knot (KNOT.OB) grows ad revenue, loses product revenue (4Q04 earnings)

The Knot Inc. (ticker: KNOT.OB), publisher of wedding planning web site TheKnot.com and home setup website TheNest.com, announced Q4 results and guidance. Key points:

Continue reading...

Posted by David Jackson on February 16, 2005 at 01:11 PM in Earnings results, Sub-sector: Content, Sub-sector: E-tailing, ticker: KNOT | Permalink | Comments (0) | TrackBack (0)

Tuesday, February 15, 2005

PowerSellers not jumping from eBay

American Technology Research analyst Mark Mahaney hosted a call with eBay PowerSellers to discuss their reactions to eBay's recent price changes. Here's the main body of his note (permission received):

Continue reading...

Posted by David Jackson on February 15, 2005 at 10:11 PM in Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (3) | TrackBack (0)

Monday, February 14, 2005

Odimo (ODMO), grey market online watch retailer with soaring marketing costs, prices IPO at low-end of range

Luxury goods retailer Odimo (ticker: ODMO) raised $28 million in an IPO led by CIBC World Markets, but the offering priced at the low end of the range. Odimo had lowered the range to $9-10 on Friday, and the offering priced on Monday at $9. Odimo runs Diamond.com, Ashford.com and WorldofWatches.com. Here are some stats about the company's business, some quick comments, and key extracts from the S-1:

Continue reading...

Posted by David Jackson on February 14, 2005 at 09:51 PM in Sub-sector: E-tailing, ticker: NILE, ticker: ODMO | Permalink | Comments (0) | TrackBack (0)

Friday, February 11, 2005

A sell-sider's thoughts on eBay's analyst day

American Technology Research analyst Mark Mahaney came away from eBay's analyst day incrementally more impressed, but unwilling to change his "Hold" rating. He writes:

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Posted by David Jackson on February 11, 2005 at 09:34 AM in Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (0) | TrackBack (0)

Smiles in Hollywood Media (ticker: HOLL)

The guys in Hollywood Media (ticker: HOLL) must be feeling happy. The comScore/MediaMetrix numbers for January were out today, and show traffic to its sites and affiliates up sharply year over year:

Continue reading...

Posted by David Jackson on February 11, 2005 at 12:02 AM in Sub-sector: Content, Sub-sector: E-tailing, ticker: HOLL | Permalink | Comments (1) | TrackBack (0)

Wednesday, February 09, 2005

Wal-Mart.com catching up with Amazon and eBay

Nielsen/NetRatings reports latest traffic numbers for November/December:

Continue reading...

Posted by David Jackson on February 9, 2005 at 06:05 PM in Sub-sector: E-tailing, ticker: AMZN, ticker: EBAY, ticker: IACI, ticker: OSTK, ticker: SHOP, ticker: YHOO | Permalink | Comments (0) | TrackBack (0)

Amtech Research maintains Hold on Blue Nile

Here's what American Technology Research analyst Mark Mahaney said about Blue Nile after the company's earnings report last night:

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Posted by David Jackson on February 9, 2005 at 02:51 PM in Sub-sector: E-tailing, ticker: NILE | Permalink | Comments (0) | TrackBack (0)

Tuesday, February 08, 2005

Amazon's bizarre press release

The night that online jewelry retailer Blue Nile releases earnings, Amazon puts out a press release that says its Q4 jewelry sales were up 120% year over year, and it has great jewelry offerings for Valentines Day. Here's what's odd:

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Posted by David Jackson on February 8, 2005 at 11:32 PM in Sub-sector: E-tailing, ticker: AMZN, ticker: NILE | Permalink | Comments (0) | TrackBack (0)

Blue Nile (NILE) on the online jewelry market (quotes from the conf call)

Here's what Blue Nile (ticker: NILE) CEO Mark Vadon had to say on his Q4 earnings conference call about marketing, diamond prices and Blue Nile's market share:

Continue reading...

Posted by David Jackson on February 8, 2005 at 11:22 PM in Conf call quotes, Sub-sector: E-tailing, ticker: AMZN, ticker: NILE, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

Blue Nile beats by 2 cents, guides below consensus (4Q04 earnings)

Blue Nile, the online jewelry retailer, beat Q4 EPS estimates by 2 cents but set guidance for 2005 below consensus. The stock rose by about 2% in late trading. Here are the key points from its Q4 earnings and guidance announcement, plus a quick comment:

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Posted by David Jackson on February 8, 2005 at 11:14 PM in Earnings results, Sub-sector: E-tailing, ticker: NILE | Permalink | Comments (1) | TrackBack (0)

Monday, February 07, 2005

Provide Commerce (PRVD) on online marketing (quotes from the conf call)

Provide Commerce (ticker: PRVD) has some interesting things to say about online marketing on its conference call:

Continue reading...

Posted by David Jackson on February 7, 2005 at 01:06 PM in Conf call quotes, Sub-sector: Advertising, Sub-sector: E-tailing, Sub-sector: Search, ticker: GOOG, ticker: PRVD, ticker: YHOO | Permalink | Comments (0) | TrackBack (0)

Provide Commerce (PRVD) has stellar repeat customer rate, trades up after earnings (4Q04)

Provide Commerce (ticker: PRVD) was one of the few e-commerce stocks that traded up immediately after announcing Q4 earnings. Here's a quick overview of the company, and the key points from PRVD's results and guidance:

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Posted by David Jackson on February 7, 2005 at 12:39 PM in Earnings results, Sub-sector: E-tailing, ticker: PRVD | Permalink | Comments (0) | TrackBack (0)

eBay reduces fees; implications for OSTK?

So eBay responded to growing negative publicity about its recent price rise, and announced that it will cut two fees. Here are the details and a comment about the impact on Overstock.com:

Continue reading...

Posted by David Jackson on February 7, 2005 at 09:37 AM in Sub-sector: E-tailing, ticker: EBAY, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

NY Times on Internet retailing

The NY Times has a perplexing survey of the Internet retailing stocks in its Sunday business section. The article, Is Online Retailing a Victim of Its Own Success?, argues that online retailing is growing fast, but the outlook for the stocks is uncertain.

Continue reading...

Posted by David Jackson on February 7, 2005 at 08:35 AM in Sub-sector: E-tailing, ticker: AMZN, ticker: GOOG, ticker: SHOP, ticker: YHOO | Permalink | Comments (0) | TrackBack (0)

Friday, February 04, 2005

Analysts react to Shopping.com results

Here's what the sell-side had to say about SHOP's results:

Continue reading...

Posted by David Jackson on February 4, 2005 at 04:12 PM in Sub-sector: E-tailing, Sub-sector: Search, ticker: SHOP | Permalink | Comments (0) | TrackBack (0)

Shopping.com stock pummeled on cost of international expansion (4Q04 earnings)

Shopping.com beat Q1 adjusted EPS estimates, but 2005 revenue growth guidance was modest and the company outlined plans to increase spending on international expansion. Details and a few comments:

Continue reading...

Posted by David Jackson on February 4, 2005 at 03:43 PM in Earnings results, Sub-sector: E-tailing, Sub-sector: Search, ticker: SHOP | Permalink | Comments (0) | TrackBack (0)

Amazon on Amazon Prime

Here's what Amazon said on its Q4 conference call about Amazon Prime, its new membership program for reduced cost shipping:

Continue reading...

Posted by David Jackson on February 4, 2005 at 02:39 PM in Conf call quotes, Sub-sector: E-tailing, ticker: AMZN, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

Amazon's marketing spend

Amazon joined the group of late trading victims after missing the consensus (adjusted) EPS estimate by a whopping $0.05. A few highlights and two quick comments:

Continue reading...

Posted by David Jackson on February 4, 2005 at 02:28 PM in Earnings results, Sub-sector: E-tailing, ticker: AMZN | Permalink | Comments (0) | TrackBack (0)

Thursday, February 03, 2005

Overstock provides more detail on "build a ring"

Overstock CEO Patrick Byrne gave more details about his company's positioning in the online jewelry market. The comments are critical reading for owners of NILE. Here they are:

Continue reading...

Posted by David Jackson on February 3, 2005 at 07:00 AM in Sub-sector: E-tailing, ticker: NILE, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

Wednesday, February 02, 2005

Another e-commerce stock tanks on guidance; this time it's Drugstore.com (DSCM) (4Q04 earnings)

Drugstore.com announced reasonably good Q4 earnings and the stock falls by 14%. Why?

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Posted by David Jackson on February 2, 2005 at 12:48 PM in Earnings results, Sub-sector: E-tailing, ticker: DSCM | Permalink | Comments (0) | TrackBack (0)

What's really behind Amazon's new loyalty program?

Amazon today launched Amazon Prime. For $79 per year, you get unlimited two-day shipping on in-stock items and overnight shipping for only $3.99 per order, and those rates can be shared with four family members in the same household. Here's the entire announcement, then some quick comments.

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Posted by David Jackson on February 2, 2005 at 06:32 AM in Sub-sector: E-tailing, ticker: AMZN | Permalink | Comments (1) | TrackBack (0)

Monday, January 31, 2005

Overstock.com (OSTK) on strategy (quotes from the conf call)

Overstock's conference call is one of the most lively of earnings season. These quotes just don't do it justice. But here they are anyway. CEO Patrick Byrne talks about price competition with Amazon, Overstock's expected 2005 growth, customer growth rate, gross margins and auctions:

Continue reading...

Posted by David Jackson on January 31, 2005 at 07:15 AM in Conf call quotes, Sub-sector: E-tailing, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

Friday, January 28, 2005

So you thought that Overstock doesn't compete with Tiffany and Blue Nile (NILE)?

Thought that Overstock.com only sells low-price, mass-market jewelry? Check this out, and reconsider...

Posted by David Jackson on January 28, 2005 at 11:24 AM in Sub-sector: E-tailing, ticker: NILE, ticker: OSTK | Permalink | Comments (1) | TrackBack (0)

Overstock enters build-to-order engagement ring market

Overstock.com announced that it was launching "build your own ring" capability on its online jewelry store in time for Valentine's day. This increases competition for other online retailers, including Amazon and Blue Nile, that already offer customers the ability to choose the stone and setting of a ring. Overstock, though, faces an interesting challenge in this business:

Continue reading...

Posted by David Jackson on January 28, 2005 at 09:55 AM in Sub-sector: E-tailing, ticker: NILE, ticker: OSTK | Permalink | Comments (1) | TrackBack (0)

Overstock is a low-margin business - is that a shock? (4Q04 earnings)

Overstock.com reported Q4 results and its stock got whacked by about 12% in late trading. First a quick overview of the quarter (the conference call is tomorrow morning), then a couple of comments about Overstock's business and why the stock got hit.

Continue reading...

Posted by David Jackson on January 28, 2005 at 03:57 AM in Earnings results, Sub-sector: E-tailing, ticker: OSTK | Permalink | Comments (0) | TrackBack (0)

Thursday, January 27, 2005

Broadband driving e-commerce

Nielsen/NetRatings reports that as of end-December, 55% of users who accessed the Internet from home used broadband connections. Forecast for end-05:

Continue reading...

Posted by David Jackson on January 27, 2005 at 02:00 PM in Sector Themes/Outlook, Sub-sector: E-tailing | Permalink | Comments (0) | TrackBack (0)

Wednesday, January 26, 2005

Red Envelope (REDE) on luxury e-tailing (quotes from the conf call)

Here's what Red Envelope had to say about its business in Q4:

Continue reading...

Posted by David Jackson on January 26, 2005 at 01:30 PM in Conf call quotes, Sub-sector: E-tailing, ticker: REDE | Permalink | Comments (0) | TrackBack (0)

Red Envelope (REDE) finds a way to make money in e-tailing (4Q04 earnings)

Red Envelope, a catalog and online gift retailer, beat earnings expectations for Q4 (the company's fiscal Q3) and guided in-line with consensus. But the really interesting points were in its business model. Details of the results first, then some comments about REDE and e-tailing:

Continue reading...

Posted by David Jackson on January 26, 2005 at 12:57 PM in Earnings results, Sub-sector: E-tailing, ticker: REDE | Permalink | Comments (0) | TrackBack (0)

Monday, January 24, 2005

Netflix (NFLX) on DVD rental competition (quotes from the conf call)

Here's what Neflix had to say about the online DVD rental market and competition from Blockbuster:

Continue reading...

Posted by David Jackson on January 24, 2005 at 11:09 PM in Conf call quotes, Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (0)

Netflix - 4Q04 earnings release and conference call detailed summary

Netflix' conference call was an opportunity for CEO Reed Hastings to assert that his company is in better shape than skeptics assume. Key points in detail:

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Posted by David Jackson on January 24, 2005 at 10:52 PM in Earnings results, Sub-sector: E-tailing, ticker: NFLX | Permalink | Comments (0) | TrackBack (0)

Thursday, January 20, 2005

eBay (EBAY) on China (quotes from the conf call)

eBay announced that profitability next year would be lower than analysts had expected. (The stock was whacked in after-hours trading.) Why? Because eBay plans to invest heavily in expanding in China and growing PayPal's business. Here's what EBAY said about its China expansion:

Continue reading...

Posted by David Jackson on January 20, 2005 at 09:05 AM in Conf call quotes, Sub-sector: China, Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (0) | TrackBack (0)

Wednesday, January 19, 2005

European e-shopping could favor ECST, NILE, OSTK, REDE more than AMZN, EBAY

The Wall Street Journal reports (subscription required) that savy Europeans are taking advantage of their strong currencies by shopping from U.S. online retailers. The article mentions Amazon as a potential beneficiary. But here's a point to consider for investors in e-tail stocks:

Continue reading...

Posted by David Jackson on January 19, 2005 at 11:40 AM in Sub-sector: E-tailing, ticker: AMZN, ticker: EBAY, ticker: ECST, ticker: GOOG, ticker: IBUY, ticker: NILE, ticker: REDE, ticker: SHOP, ticker: YHOO | Permalink | Comments (1) | TrackBack (0)

Thursday, December 30, 2004

Five Internet danger signs to watch for in 2005

The next few weeks will likely see a flurry of predictions for 2005, to the point where you'll be sick of reading them. So instead, I'm providing something which I hope will be more useful for investors in Internet stocks and managers of Internet companies: a checklist of danger signals for Internet investors to look out for next year. For each danger signal, I've specified which stocks will subsequently be at risk:

Continue reading...

Posted by David Jackson on December 30, 2004 at 11:03 PM in Sector Themes/Outlook, Sub-sector: Content, Sub-sector: E-finance, Sub-sector: E-tailing, Sub-sector: Search, Sub-sector: Travel, ticker: AMZN, ticker: ASKJ, ticker: BFLY, ticker: CNET, ticker: CTRP, ticker: EBAY, ticker: GOOG, ticker: HOLL, ticker: IACI, ticker: MSFT, ticker: NFLX, ticker: NILE, ticker: OSTK, ticker: PCLN, ticker: RATE, ticker: SHOP, ticker: TSCM, ticker: TZOO, ticker: YHOO | Permalink | Comments (5) | TrackBack (4)

The end of elation? Verisign's online shopping number is lower

Verisign reports this morning that online holiday shopping spending rose 24% year over year. That's lower than comScore's recent 28% estimate, and since Verisign tracks actual payments its number may be more accurate.

Verisign's category data are useful: electronics up 17%, apparel up 45%, music and video downloads up 54%, photo printing and sharing up 120%, and "general retail" up 24%. The largest constituent of "general retail" is Kitchen-and-Housewares at 24% of the total. Of note:

  • Electronics was an early success for online sales (think Dell), so it's a heavily penetrated category. Still, 17% growth is strong (all those iPods).
  • The apparel numbers are really strong. Offline retailers are getting their acts together, and Amazon's apparel store is working.
  • "Music and video downloads"??? Sounds like "iTunes downloads" to me. Who else (large) is there?

Posted by David Jackson on December 30, 2004 at 09:57 AM in Sector Themes/Outlook, Sub-sector: E-tailing, ticker: VRSN | Permalink | Comments (0) | TrackBack (0)

Wednesday, December 29, 2004

Traffic to e-commerce sites up 26%

Australian Web research firm Hitwise reported that traffic to U.S e-commerce sites during the peak shopping season rose 26% year over year. Hitwise includes traffic to eBay, Craigslist, classifieds.yahoo.com, and the Web sites of offline retailers, including Wal-Mart, Best Buy and Target.

Looks like this number is consistent with other data about holiday shopping trends, such as comScore's recent prediction of 28% online revenue growth. So probably no stock impact.

Posted by David Jackson on December 29, 2004 at 06:27 AM in Sector Themes/Outlook, Sub-sector: E-tailing | Permalink | Comments (0) | TrackBack (0)

Monday, December 27, 2004

Were holiday online sales THAT good?

E-commerce stocks are up sharply today on the comScore prediction that holiday online sales will grow 28% year over year. Earlier, comScore and others were predicting online sales growth of 22-25%. So the stocks are moving:

  • Amazon up over 8%
  • Bluefly up 11%
  • Drugstore.com up 4%
  • Ecost up 9%
  • Overstock up 2%
  • Shopping.com up 6%

Yahoo!, eBay and Blue Nile aren't participating in this rally. But I wonder whether three percentage points of upside to the aggregate growth number (28% from 25%) is enough to justify the moves in the pure-play e-commerce stocks. After all, 28% growth is still below last year's growth rate of 30%, and offline retailers like Wal-Mart are taking market share online.

Full disclosure: at the time of writing I'm long SHOP.

Posted by David Jackson on December 27, 2004 at 01:40 PM in Sector Themes/Outlook, Sub-sector: E-tailing, ticker: AMZN, ticker: BFLY, ticker: DSCM, ticker: EBAY, ticker: ECST, ticker: NILE, ticker: OSTK, ticker: SHOP, ticker: YHOO | Permalink | Comments (0) | TrackBack (0)

Walmart.com is beating expectations

The Wall Street Journal reports that walmart.com's traffic and sales have exceeded expectations, despite mediocre sales numbers from Wal-Mart overall. In an article about holiday retail sales (subscription required), the WSJ writes:

Walmart.com says traffic was higher than expected in the weeks leading up to Christmas, with visitors on Monday and Tuesday significantly exceeding its expectations. The Web site had brisk sales of digital cameras, TVs and gift cards. It completely sold out of Robosapien, a $78.84 remote-controlled robot.

The strong performance of walmart.com is consistent with other data, such as the Google 2004 search statistics, that suggest that the offline retailers are beginning to take share online.

Posted by David Jackson on December 27, 2004 at 12:08 AM in Sub-sector: E-tailing | Permalink | Comments (0) | TrackBack (0)

Thursday, October 21, 2004

Stamps.com (STMP) moves to profit (3Q04 earnings)

Stamps.com (ticker: STMP) reported its first ever profitable quarter for Q3. Details:

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Posted by David Jackson on October 21, 2004 at 04:35 PM in Earnings results, Sub-sector: E-tailing, ticker: STMP | Permalink | Comments (0) | TrackBack (0)

Quotes from the eBay (EBAY) 3Q04 conference call

All quotes are from the CCBN StreetEvents transcripts:

Net revenue totaled a record 806 million representing strong year-over-year growth of 52%… eBay EachNet is far and away the number 1 e-commerce player in China… EachNet now supports the third largest eBay population outside the United States…

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Posted by David Jackson on October 21, 2004 at 11:56 AM in Conf call quotes, Sub-sector: E-tailing, ticker: EBAY | Permalink | Comments (0) | TrackBack (0)