A little discussed aspect of the New gTLD program is the effect it may have on the stock prices of some of the larger portfolio players. For example, Top Level Domain Holdings (TLDH) will end up with one of the largest new registry holdings and this has some analysts excited about the possibility that it will lead to a positive impact on the company’s stock price according to an article published at ProActiveUKInvestors.co.
TLDH is listed on the London Stock Exchange where its stock price sits at £4.38 per share as of this writing. The stock has taken a steady dip down since March 2013 from a 52 week high of over £9 per share. In June 2012 a piece in CircleID noted that TLDH is the “bell-weather” stock for the New gTLD program because its price is a complete reflection of its performance (or anticipated performance) in the New gTLD program. That article tracked the stocks growth at 131% from 2008 to June ’12. The lag in share price since then is likely a product of the problems that ICANN has had in meeting all the deadlines for the program and concerns over execution. However, in its unaudited financial statements released earlier today, company chief Fred Krueger looked at the company’s progress, stating:
“[n]onetheless, it is worth repeating that TLDH now has an actual ownership interest in 25 uncontested generic, non-brand top-level domains, and we have applied for 48 additional names. We are the fourth largest applicant in the world after Donuts, Google, and Amazon. We also have significant financial resources, including a commitment of $10 million (and up to $15 million) for a single name auction.”
Whether TLDH’s stock price is poised for a big rally is anybody’s guess, however, it certainly appears to have the financial muscle and established infrastructure to make a major splash once the gTLDs start to go online...