Merrill's Blodget Says 75% of E-Companies Will Fail
(Update1)
By Anthony Massucci
Merrill's Blodget Says 75% of E-Companies Will Fail (Update1)
(Adds details on Blodget's comments starting in sixth
paragraph.)
New York, March 2 (Bloomberg) -- Merrill Lynch & Co.'s Henry
Blodget, one of the best known Internet analysts, said that three
quarters of all Internet companies will fail within five years.
Of all Internet companies, ``75 percent will disappear within
five years and 75 percent will never make money, or sell
themselves,' Blodget said at the Silicon Alley 2000 Internet
conference.
Blodget, who achieved notoriety by predicting the surge in
Amazon.com Inc.'s stock price, said the Internet industry is still
only half grown, though the second half of its growth will be less
valuable than the first. He predicted industrywide revenue will
rise to $2 trillion to $3 trillion in the next five to 10 years.
The Internet market is changing, Blodget said, because
investors are getting to the point at which they have ``had their
fill of Internet stocks. There's little scarcity value left.'
Value exists in wireless, business-to-business, and Internet
infrastructure stocks such as Internet Capital Group Inc., Ariba
Inc. and InfoSpace.com Inc., Blodget said. He also said
HomeStore.com Inc. and DoubleClick Inc. are less expensive than
their true value.
``I think the privacy concerns will pass at DoubleClick,' he
said. |
