The recent news about Monster.com earning a profit was all over the newswires. The same news sent their stock soaring 10% as investors regained a bit of confidence in their model.
One article in particular was titled A positive sign for economic times. Now I am a fan of any company creating success, but really? Did people not see rest of the earnings release?
Revenue was down almost $20 million over the previous year and one of the main reasons they made money was the salary reductions – that means layoffs, unemployment.
Now I am a capatalist and I applaud CEO Iannuzzi for making the hard decisions necessary to return the company to profitability; that is his job. That being said, I would be very cautious to use this as an indicator regarding the future success f job boards or the economy (I have seen articles drawing both conclusions!).
Now I love the fact that companies are making money again since hopefully that means they will hire again – assuming their customers continue paying for their service or products. We should however be cautious about making potentially dangerous predictions about much broader economic predictions.
I wish the Monster family continued success!