Dot Com Fever Warming Up. Again
The International Herald Tribune today posted an interesting article about what it calls ‘Dot Com 2′.
The article talks about the rush to buy audience building technologies such as Facebook at extremely high valuations because of perceived long term values.
According to the article, the social networking website Facebook is currently begin valued at 15 billion dollars. That’s a remarkable valuation. Google’s own public valuation is bringing in more than $600 per share on the open market, causing some to wonder if this stock is unstoppable.
Internet properties such as Linking Universe are being judged, in part, for their ability to garner an audience. The volume of customers a property can collect is being considered a part of the valuation, and not necessarily because of the revenue it can generate. While revenue is king when it comes to establishing a traditional valuation, big investors such as Microsoft, Google, and Yahoo! are considering the opportunity to leverage large crowds of people in advertising strategies and online marketing.
It appears that the original ‘dot-com’ bubble burst, it was a result of investors asking ‘how is this going to make money?’, and not really coming up with an answer. Companies like Google have now proven that money, and a lot of it, can be made by focusing on building and attracting large audiences. The social network phenomenon has proven this success, and while some investors remain bewildered, others are jumping in with a new understanding of how the Internet can be a lucrative investment ground.
Our own research indicates that the social networking phenomenon will not only continue to grow, but will experience a lucrative migration toward business networking, where users will be concerned with growing their social network, and turning their network of friends into a network of customers, resources, and introductions.
Linking Universe is a social network for business. Watch this page for more information, or Click Here to contact us. Information is provided only to qualified investors at this time.
