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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Trevor Quest who wrote (2309)	3/23/1999 12:58:00 AM
From: Greg S.	Read Replies (2) \| Respond to of 28311

Here's my $0.02 on the internut craze. There's no such thing as an "overvalued" internet stock. To value such securities based on trailing earnings or even forward earnings is ridiculous because this particular industry is only a few short years old. "Valuations" of internet stocks must be based on how well they are positioned for the future. Large user bases and lots of traffic are much more precious than any kind of cash flow. We are moving beyond the Age of Information and entering the Age of Attention. In the coming decades it will no longer be a question of who can provide what product or what information or what service, because you will be able to find anything just about anywhere (at least the more affluent inhabitants of this world will). It will be a question of who can keep the attention of the most users and earn their mindshare. You don't think Yahoo is "worth" all that money? Think of the power they have. If they put a banner up on their site, within 24 hours hundreds of thousands of people have gone there. From a traditional standpoint this represents lots of earnings potential in the form of advertisement revenue, but the way I see it what it really translates to is that they control "attention". And while an internet portal itself can't do a whole lot with that attention aside from getting ad revenue, a more consolidated firm can direct that attention to the products, information, and services that it provides - and the e-commerce market both for consumers and businesses is growing in leaps and bounds. That's where the money ultimately is. Anyway, GNET fits in here because they've got a pretty good piece of the pie in terms of mindshare. A loyal following, a lot of traffic, and a profitable business model which represents near-term stability and less uncertainty. A very attractive option because they are making money NOW and doing a darn good job at it. Overvalued? No way. -G