Wednesday, July 22, 2009

Is the Internet Dead?

As an Investment it is.

This is why I continue to believe that GOOG and AMZN while they continue to crank out lunch money on a quarterly basis are great companies, but eventually they will be seen as just utilities, trading at 10-15X PE going forward.

Sooner or later they will slip up, and the multiples will come spiraling down. If you don't believe me, take a look at Cisco, Intel, and Microsoft. These are great companies, but rotten investments. As soon as these companies dropped the ball for a quarter or two, the hot money left and multiples crashed never to return.

online.wsj.com/article/SB124784696163158721.html

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