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Technology Stocks : Internet Analysis - Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (318)	4/12/1999 1:42:00 AM
From: Dayuhan	Read Replies (1) \| Respond to of 419

That's why there is so much advertising spending for these companies. Perhaps my ignorance is showing (again) but this seems to me to point to a vicious circle, with the need to generate sales and maintain cash flow driving successive rounds of price-cutting and eternally rising advertising expense, both of which will then bounce back in greater and greater losses. I also suspect that web ad rates will rise significantly over the next few years, at least on pages with quality exposure, as site operators come under pressure to generate revenue. This will have its own set of effects. I still think that the Internet will be a huge focus for business, but I suspect that the business models may change drastically as the shape of the online world develops. I am not entirely convince that the powers that currently dominate will end up on top of the pile.