This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Son of Bubble' Comes of Age

Sure, the tech IPO market is all but dead. And Internet stocks, which are still overvalued, have been down recently. More importantly, it's been the case for some time that there is more money going into tech venture funds than there is coming out in the form of startup investments. And who is so eager to put money in the venture funds? Why, it's the same institutional investors who are bashful about tech IPOs.

But all it could take to spark speculative buying in tech IPOs is a few big debuts. Google's (GOOG - Get Report) hot IPO in 2004 has been written off as a one-time fluke, but there are a few candidates that could follow its act: MySpace (should NewsCorp (NWS - Get Report) decide to spin it off), YouTube and even Wikipedia.

Look what happened 10 years ago: After Netscape's IPO took off in 1996, it was discounted as a one-time quirk. Then (AMZN - Get Report) went public the next year and slowly the mania for tech IPOs caught on.

It's the particulars that these bloggers were reacting to that are probably the most disconcerting in the short term -- the early signs that the practices of the bad old days may be on their way back: excessive spending on pointless marketing, the cult of tech celebrities, and, above all, the funding of companies because the money was there and not because the company would someday turn a profit.
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 0.00%
AMZN $673.26 0.00%
GOOG $750.26 0.00%
MSFT $53.93 0.00%
NWS $14.37 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs