<If you did, you would be short these companies, so why aren't you?. I also don't care what YOU think, but perhaps you should not act as though you know better than everyone else.>
I don't short Internet stocks because I'm not willing to expose myself to the possibility of huge short-term losses even if I'm certain I'm right, long term. Furthermore, I prefer an investment with a maximum theoretical loss of 100% and an upside of several times that, rather than the converse. And I respectfully reject your suggestion that I alter the tone of my posts. If you're not comfortable with other people authoritatively stating opinions with which you disagree, perhaps you should simply refrain from reading those individuals' posts.
Internet advertising has been referred to by commentators as a zero-sum game because, speaking casually, "all" Internet companies advertise on one another's sites and their advertising revenues and expenditures from and to one another, considered in the aggregate, cancel one another out. Only by receiving revenues from outside the system (i.e., from consumers) can a company succeed. I didn't invent this analysis, but I like it.
EDIT: I posted the above before reading Joe Smith's analysis, which is vastly better. |
