In SEO news concerning the continued struggles of content farm Demand Studios, losses were only reported as being $6.4 million last quarter compared to $7.6 million a year earlier. While some analysts are optimistic that Demand Studios is turning the corner and heading toward profitability, on a quarter to quarter basis at least, they are still sitting far below their IPO price of 417/share which may not be seen again for a couple years under the best of scenarios.
The struggles of Demand Media have been well documented. Their failure to adjust to Panda in any timely or sensible manner killed their advertising revenue stream. Losing three top executives in one fell swoop was certainly an incredible amount of egg on their face. What worries many though is that Demand cannot outrank sites that parody their brand on Google searches. For a business built on SEO content, that is disturbing. There have also been questions regarding the quality of writers and editors that stayed behind when the company was falling apart and whether they can attract them or new ones to their platform without raising pay over rates that are years out of date.
While Wall St. analysts that also backed subprime mortgages are falling in love with Demand media, many SEOs are failing to see the attraction. One would think that the opinion of the actual employees would matter when they are so negative and outspoken against the employer, but on Wall Street, nothing makes sense anymore.