Comments on: Can We Use Alexa Rankings to Buy or Sell Stocks

By: Acronyms

Acronyms — Fri, 08 Jan 2010 01:42:11 +0000

There are for too many variable to consider when stocks are purchased and sold and traffic doesn’t have direct impact on these decisions at all.

By: Ryan

Ryan — Sat, 08 Mar 2008 10:52:00 +0000

Hi, great site, thanks for info! Get some banners from cj.com, to make extra buck.

By: MoneyNing

MoneyNing — Mon, 13 Aug 2007 03:31:11 +0000

Super Saver: Thanks. I will be sure to add the link to next week’s top commentator postings

Houyhnhnm: Sure, Yahoo is losing market share but search market share is totally based on traffic! I have to assume that Yahoo and Google will eventually to be able to monetize each visitor the same way once the industry becomes more and more mature.

Profit might be better right now at Amazon compared to before, creating growth but there is no doubt that sales come from visitors and there is a corelation between traffic and sales. Without traffic, there’s no sales, without sales, there can’t be any profits.

By: Houyhnhnm

Houyhnhnm — Mon, 13 Aug 2007 02:03:18 +0000

Whether or not Alexa is accurate, I don’t think these numbers are likely to drive the price of either stock. Investors see Yahoo! is in Google’s crosshairs, and losing market share. Google is 21st century, while Yahoo! is last century. Easy conclusion: buy Google and short Yahoo!.

The chart on Amazon reflects two great quarterly reports. After years of losing money, Amazon is raising profits and converting the skeptics, who are buying or at least covering their short positions. Sales and profit trends will trump traffic trends in most cases.

By: Super Saver

Super Saver — Mon, 13 Aug 2007 00:28:52 +0000

MoneyNing,

Thanks for your submission to the Festival of Stocks. It’s an interesting Wisdom of Crowds approach. Good luck in finding a accurate traffic gauge.

This post is included in the August 13, 2007 edition of the festival.

By: MoneyNing

MoneyNing — Wed, 08 Aug 2007 21:35:46 +0000

Eric: Could be but I think we first need to figure out how to get an accurate number first before we can really analysis the effectiveness of this.

By: Eric

Eric — Wed, 08 Aug 2007 17:20:46 +0000

That might be a good indicator for ad based revenue sites versus service/good based.

By: MoneyNing

MoneyNing — Wed, 08 Aug 2007 02:39:58 +0000

J2R: I am sure there are many people who visits the online stores for other reasons, but I’m only suggesting that we need to look at the relative traffic trend as opposed to the absolute traffic number. If I see that the visitor trend is going up and up, then I will bet that they are also getting more sales.

By: J2R

J2R — Wed, 08 Aug 2007 02:11:16 +0000

The article I read (which I still can’t find) used more specific data, such as “how many returning visits from the same user to generate one buy”.

eBay would require a lot less visits to generate a sale, while amazon and overstock required a lot more.

It’s an interesting thought, but I really wouldn’t bet my money on the money being able to figure out how to monetize their users better.

A lot of users go to Amazon to check prices, read products reviews and a lot of other stuff. Don’t know why users don’t convert on overstock. For me, I’ve been there several times looking for a bargain, but always found them to be Not such a good deal.
While ebay users, I figure them to go there specifically looking to buy something.

By: MoneyNing

MoneyNing — Tue, 07 Aug 2007 21:10:37 +0000

J2R: I must imagine that they are working hard to efficiently increase the sales / visit ratio and when they have it very efficiently, then checking this would give us a good gauge in the future

Pinyo: Yup you are definitely correct. That’s why I chose eBay and Amazon since they are online only stores.

Punny: Yeah I figure that Alexa rankings aren’t accurate but this is just another way to prove it. Also, it would be amazing if there was an accurate way (google analytics for the public version) or something so we can do these kind of analysis.