>Like someone said, perhaps oversimplistically, it's the perceptions.
Agree completely. Yes, the internet is transforming many
aspects of life. It is pervasive, and is becoming more and
more pervasive. This will continue.
However, stock prices of many stocks already reflect this, and
perhaps MORE than reflect this. The underlying technology
and its effects are great things, but if people become TOO
excited about them, stock prices may get too high. You can find
many high tech companies in the last 5-10 years whose stock
prices surged parabolically upwards, then collapsed downwards
in a similar fashion. That's what happens when no more Really
Excited People decide to buy that stock.
I'm not saying that this will happen w/ ATHM, or any other internet
stock, but it MIGHT. As the slope of the rise gets steeper, so
does the probability that the drop will also have a steep slope...
I think that's what Frank was referring to when he said:
"...at some point he always gets paid. At that stage we reach
a point of inflection which everyone is asking about. Most
are willing to gamble that the turning point is too far
into the future to worry about." |
