Friday, April 28, 2006

Traffic based investment



Can published traffic statistic for publicly held internet based companies aid us in future investments?
Lets take for example two of the major internet companies Google, and Yahoo.
A fast comparison in Alexa web-traffic service shows that Google have closed a reasonable gap:

Can these results help us predict quarterly financial results for both companies?

Judge for yourselves. Shorting the last 6 months Yahoo against Google would have returned the following results:


Where as risk against internet bubble blow-up is minimal. Good enough for you? I know it was good enough for me.

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