Cash or Trash: Technorati
January 11th, 2007 | Categories: cash or trashI am launching a new series of posts entitled “Cash or Trash”.
In every post, I will name a well-known web 2.0 company. Readers will then have to decide whether the company is worth investing in or whether it’s doomed for bankruptcy. In other words, would you invest cash in the company or do you think it should be thrown in the trash?
Provide a brief argument as to why or why not you would invest in the company in the comments. Debating and arguing is highly recommended and encouraged, as long as arguments are well sought-out and thorough.
A couple of points to keep in mind:
- Determine whether you would invest at TODAY’S valuation. Forget past growth. In other words, do you still think the company has a lot of upside potential?
- Don’t treat your ‘cash’ like play money. Would you actually see yourself investing in the company if given the opportunity to purchase shares?
- If you are not familiar with the company or service, refrain from posting until you try the service.
Now, on with the show….
Today’s Cash or Trash company is Technorati.
January 11th, 2007 at 8:19 pm
Cash. I use Technorati (and Google Blog Search) just about everyday for research. It also comes in handy for us bloggers to track growth and discussion. Also, Technorati lets users subscribe to blogs through Technorati Favorites, which is a plus for both site owners and readers.
Cool idea on the Cash or Trash. Should be fun
January 12th, 2007 at 3:14 am
Cash.
I think it’s one of those sites that have already weathered the worst of it, and they’ll pretty much be around indefinitely.
Unique Service
Customer base
Solid
January 12th, 2007 at 4:13 pm
Cash.
They have proved that they have the force to stay around and they have such a large user base that it would be hard for someone to come in and try to erode that market share.
January 13th, 2007 at 11:07 am
Neutral? (there got to be an option for that)
I would not invest in Technorai now, but I don’t think they’ll completly fail either.
They have a very large and solid market presence.. but until they can say the same about their revenue model, I’ll keep my cash.
January 15th, 2007 at 1:51 am
I don’t see how anyone would turn down the opportunity to invest in Technorati (hopefully at an attractive valuation).
It’s Alexa-ranked at 193. Has millions of people coming to the site every day. So it’s got tremendous mindshare and marketshare.
Sure, it’s revenue model is not readily apparent (but then again, Hotmail wasn’t generating tons of cash either).
It’s a brand name among bloggers too.
So if it’s acquired, the acquirer will gain a huge userbase, massive mindshare.
From there, an enterprising business owner could develop a paid premium service which the members would be hungry for and you’d have a viable business.
As a business consultant, I’ve worked with lots of start ups and business owners to turn their outfits around.
I don’t think there’s any such thing as a failed or trashy business. Only people with small imaginations.