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Tech Investor: Overture’s sour notes - Apr. 28, 2003
It created pay-for-placement ads. Now it’s facing a big problem: Google is stealing its business.
To slip out of the noose that Google has placed around its neck, Overture needs to take action — and fast. First and foremost, it must diversify its revenue stream. Currently, its top two customers, Yahoo! and Microsoft account for 65 percent of total revenues. Its top 10 clients account for 83 percent.
This is why I don’t speculate on stocks. Google is really on a roll these days and Overture investors are starting to run for the hills.
The good news is Overture is strongly positioning itself as a global leader - not just a U.S. leader. This has the potential of far surpassing the amount of money available in the American market. But that is a long-term goal. Right now the playing field is here in the States. The scary thing from my perspective is, the 65% Overture is now banking on from Yahoo! and Microsoft is probably not going to last forever.
