Tuesday, June 12, 2007

Profitability Ranking of NASDAQ-100 Stocks

I came across this info on the Yahoo Finance site. It is very interesting to see the Net Profit margins for some of the top search and e-commerce sites. Here is the entire list but I wanted to highlight a few:

Net Profit Margin for the past 12 months
  • Google check's in at number 8 with a 29%.
  • Microsoft is number 10 at 28%.
  • eBay is at number 25 with a 20% net profit margin.
  • Apple comes in at number 44 with 13% (I normally wouldn't include a mfg in this list but Apple is a retailer also)
  • Yahoo is at number 49 with an 11% net profit margin.
  • IAC/Interactive Corp is number 81 with a 3% net profit margin (Looks like an eBay sellers net profit margin on much less revenue)
  • Amazon comes in at number 87 with a 2% profit margin -- Imagine where they would if they didn't have 3P (Third Party) sellers.
Costco comes in at number 88 and a 2% net profit margin. I only mention them because 2% net profit for their type of business is not bad. What is IAC and Amazon's excuse?

Just thought you might enjoy the info.

2 comments:

Randy T said...

Randy,

Thanks for posting this, I think its really interesting data! As I ponder the 2% net profit margin of Costco, it makes me reflect on the current market for the larger ebay media sellers. I wonder if their ebay margins have shrunk to that low? If so, it could still be a good living (for the few mega-sellers), but definitely a VERY unstable one. Costco has the size and the corporate muscle to adapt to a changing marketplace. But with the ebay marketplace so broken and seller overhead only rising, I think most all ebay sellers can't adapt nearly as well, with the high volume, low margins Costco model....what do you think?

Keep up the good work, I'm anxious to hear your reports from the frontlines in Boston!

Randy T.

Randy Smythe said...

Hi Randy!

My guess is many of the large Media Sellers are lucky to get 2% net profit. When I restructured in 2005 I finally was profitable again at 2% net during the 4th quarter. But I would have lost money again in the summer of 2006 (and I didn't even know about the Store Fee increase). That's when I decided it wasn't going to get better and shut it down.