Thursday, April 3, 2008

Craig's List worth 5 Billion WTF??

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Stock analyst Henry Blodget has valued online classified web site Craig's List at 5 billion dollars. Given that the only revenue that Craig's List generates is from posting fees from real estate brokers in certain cities. Over blown evalation, I think so. A more down to earth value is around 150 million dollars, the value placed on Craig's List from Classified Intellegence.

This speculation about the value of Craig's List is not much more than the dipping the proverbial toe into the water to find out if there is any interest in an IPO. For Craig's list to be attractive to investors then they would have to consider other forms of generating revenue such as on page advertising and charging listing fees to all commercial sellers. I see the wand coming out of the bottle of dot-com bubble liquid.

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