Web traffic continued its dramatic spiral for Matt Drudge’s news aggregate site in October and at this point, the negative numbers are beginning to resemble one of the models employed to predict corporate disasters.
One of the things you learn as a Ceritifed Fraud Examiner is forensic accounting and modeling and Drudge’s recent and quick mud slide of web traffic is starting to look like the Enron model. And that obviously is not good.
It is a good thing Drudge is not working in corporate America or running a publicly-traded entity. He would be in deep trouble.
As Investopedia frames it:
The story of Enron Corporation depicts a company that reached dramatic heights only to face a dizzying fall. The fated company’s collapse affected thousands of employees and shook Wall Street to its core. At Enron’s peak, its shares were worth $90.75; when the firm declared bankruptcy on December 2, 2001, they were trading at $0.26. To this day, many wonder how such a powerful business, at the time one of the largest companies in the United States, disintegrated almost overnight. Also difficult to fathom is how its leadership managed to fool regulators for so long with fake holdings and off-the-books accounting.
I have used the Enron model — specifically the schematics of its plummeting stock index — as a barometer for pinpointing problematic corporate warning signs, trap doors, and wayward executives and it rarely fails.
Drudge’s overall web traffic is down nearly 18 percent in September and October, according to the tracking metrics on Similar Web. That’s a massive and accelrated slide from approximately 93 million visits to 77 million.