Internet Search Engines - The New Conglomerates? Message Board

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Technology Stocks : Internet Search Engines - The New Conglomerates?

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Jun 26 5:00 PM EST

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To: ItsAllCyclical who wrote (40)	4/20/1998 7:19:00 PM
From: Zhaohui Chen	Read Replies (1) of 165

Is that true internet business is too crowded? So many companies are doing basically the same business. The technical entry barrier to this business is almost none, i.e., everybody can do it if he / she has the recourses to start. The advertisement fee will have to be divided among all players, which mean everyone will get a small portion of a big pie. Although the total business is growing rapidly, I do not see how an individual internet company can make big monies. As a matter of fact, many of these companies are still in red, and will show only very modest profit in next 2-3 years. It may take them multi-years to achieve a PE of 25, which is the average PE of S&P 500 companies currently have. It is obvious that the price of the internet companies is moving way ahead of actual achievable earnings.

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