This is becoming awfully familiar; once again AskJeeves has shown itself to be in a very reliable and powerful financial position! Thanks to the latest IPO rumors at Google, AskJeeves stock actually doubled since the first of March. The reason? Approximately 70% of AskJeeves profits come from Google via sponsored (adwords) listings showing up in various AskJeeves properties. With Google showing so much potential in the coming IPO, investors are betting that AskJeeves will reap the rewards of higher sponsorship payout’s.
Although not without risks, this position is a beautiful one where AskJeeves can selectively compete with Google (via their own algorithmic spider) while reaping the rewards of its competitor’s growth.