According to a recent article in Domain Name Wire, "shares of domain name company Tucows are down over 15% in early trading after announcing earnings."
Elliot Noss, President and CEO of Tucows, says:
"We delivered solid financial performance in the second quarter, which benefited from the sale of a block of 2,500 domain names from our portfolio,"
"… disappointing Google ad revenues resulted in weaker year-over-year revenue growth"
The article comments on Tucows selling off some domains from its portfolio:
"This is equivalent to a company selling off revenue-producing assets. This is a smart move if the price is right, but eliminates the revenue potential of those assets. Second, it appears that Tucows domain name parking revenue with its partner Google (NASDAQ: GOOG) came in below expectations."
Of course, the fun part is that parked domains DON'T have any actual revenue they produce other than pay per click (PPC) or click through traffic, Google ads etc. And that is ALWAYS going to be far, far less than the multi million dollar values attached to some domain names, most of which get bought and sold among domainers rather than going anywhere near the "general public".
Even very high levels of overinflation in the market, can remain completely unnoticed, in such an incestuous market.
This article only reinforces my frequent comparisons of "domaining" to the Tulip craze or the south sea bubble.
By Suresh Ramasubramanian, Architect, Antispam and Compliance
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