Actually my domains didn’t but my Marchex investment did. I admit it, I was pretty pissed at Marchex earlier in the year. I wrote an article about them not being a domain industry measuring stick and felt they were heading the wrong direction. Then “Bill” a reader told me I need to do my homework before I wrote the article and that I was all talk and no action. He turned out to be right.
So I did a little homework and continued to follow Marchex. I pulled the trigger in August but didn’t post about it because I hate to give stock picks because I’m always afraid someone will follow my lead and they might lose money. I learned this from my last blog, a blog about investing. It turned out I put money in Marchex, not because I thought they were doing anything exceptional but because they represent domain investing, an industry that I think is in growth mode again. I also think they are an obline advertising company, another industry which is seeing huge increased growth. Add in their deals with AT&T and their pay per call programs, and I think they are headed in the right direction. I didn’t put in very much money but it has done as well as any stock in my portfolio.
Motley Fool had nice things to say about Marchex today as well (I admit it reads like it was written in 1995)
When this whole Internet thing started, not many people realized what it would mean to have a popular domain name that could drive eyeballs — let alone dollars — to your site. But “not many” doesn’t mean “no one,” and a few smart people bought up seemingly generic domain names: business.com, news.com, even sex.com.
Today, owning domain names is big business, since they can go for thousands and sometimes millions of dollars. For example, Amazon.com (Nasdaq: AMZN) paid a princely sum to the owners of Quidsi, which had the wherewithal to own both Diapers.com and Soap.com.
So if Marchex is already in your portfolio, you just might want to hang onto it, as it owns thousands upon thousands of domain names. Following the going-private deal for Internet Brands, Marchex might be able to drum up a following too.
The CAPS community is certainly leading the way, with 87% of those rating the domain hog to outperform the broad market averages.
If you think it’s too late to get in I think you’re wrong. I think there is still room to grow. There may be a pullback in price soon (all stocks pull back at some point) but I still see this stock higher at the end of 2011.