Are Web Stocks in Bubble 2.0?

Posted by Wealth Wire - Wednesday, May 25th, 2011

Henry Blodget of Yahoo Finance says web 2.0 stocks are not a bubble. In fact, he says "we are debasing the word bubble" by calling them that.

He points out that companies like Apple and Google are making a lot of money.

I would add that smaller frys like Groupon aren't doing bad either. They grew revenue from $33 million in 2009 to $760 million in 2010. 2,203% year-over-year, not bad...

Blodget does say that he wouldn't touch LinkedIn shares at this valuation. It does seem a little rich at around 1,000 times 2010 earnings. Amazon and Netflix both look expensive too, but they are both well run, fast growing companies.

The clip includes an argument from a bubble-sayer, as well:

  +2

More like this...

Google's Smart Phone Market Share Nears 50%
Google's wildly successful Android mobile operating-system may hold 50% of the world smart-phone market by 2012.

Google's Endless Ambition
These are exciting times for Google investors, as the search engine giant has diversified its platform significantly. What's next from the android powered market.

5 Reasons Google (GOOG) is Dirt Cheap
5 quick reasons why Google shares are cheap (starting with its $35 billion in cash...)

Apple Sues Samsung for 'Copying' iPad, iPhone
Apple, Google, RIM, Samsung, HTC. All scrapping over market share. The lawyers must be salivating over this one...


Silver Pandas