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| Warning: Compaq is On the WWWarpath |
| (12/6/98)- Compaq
purchased Digital Equipment Corporation, including the company's rights to the one of the major search engines, AltaVista, a site with one of the highest level of Web influence. But Compaq has not yet used its rights to the search engine to raise its own Web influence to similar levels. Visitors to this site, one of the two most popular searching tools on the Internet, are unlikely to know Compaq is associated with AltaVista in any fashion. We consider this as a perfect example of a major computer company that in searching for a better market presence, has failed to accumulate Web presence. (1/19/99)- In January of 1998, the Compaq Corporation purchased Digital Equipment Corporation for $9.6 billion, creating one of the largest computer companies worldwide. With this purchase, Compaq obtained a vast resource of enterprise-related technology, as well as increased research and development possibilities. What few media observers mentioned was that Compaq had also obtained the rights to Digital's top-rated search engine, Alta Vista, acclaimed as one of the top five-visited sites on the Internet. Compaq too was quiet regarding this acquired technology during 1998. When we published our table on the top 100 computer companies and the current state of Web Influence on December 6, 1998, Internet Valley noted this lack of effort on the part of Compaq to utilize Alta Vista. In a public scolding, Internet Valley wrote Compaq's failure as "a perfect example of a major computer company that in searching for a better market presence, has failed to accumulate Web presence." By January 11, only three weeks after our publication, Compaq and the national technology media announced that they plan to "make AltaVista the leading guide for both information and e-commerce on the Internet." - Yahoo! Business news (1/11/99) Following this, shares of Compaq jumped nearly 10 percent on the news, and the company's announced $220 million purchase of Shopping.com. If that declaration and some of the preliminary movements in this direction, including an increased use of the Alta Vista site, truly become Compaq's long-term market strategy, we at Internet Valley can see enough reasons to believe that it will become one of the strongest leaders of the Internet soon. In brief conclusion: if taken in consideration that Compaq still has a relatively low market capitalization to sales ratio and an increasing state of Web influence, this company's stocks value will likely significantly increase its ascent over the near future.
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