Steve, Yes your correct, right now Wall Street is betting on Aol, Yhoo and Amzn as being growth stocks because of all the TON'S of $$$, advertising that these stocks will pull in.
A year or two down the road, I don't buy it! But right now every 25 tr old stock broker, is convincing your GrandMa, to put her hard earned retirement into these internet plays, because they CAN't loose!!
Example! Today Amazon.com goes up on the Yhoo announcement.They made .08cps, .05 diluted. @ $100ps, who in the hell would buy this stock if they only took, accounting 101?
After the close, the Ceo of Borders (No2, to Barnes & Noble) comes out and says, 'How B&N paid $40mil to Aol, to advertise their products blows my mind, there's just not enough profit in the book business to justify this' he then goes on to say this internet advertising hype will pass.
The bottom line is Wall Street is hyping the advertising expected revenue. But for a while buy, buy,buy.
The real skill here, will be know when to leave and THAT I can't help anyone with. |
