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:


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