- America Online and the Internet stock bubble. I was among the most vociferous bears extant on technology in the late 1990s. In 1997, I wrote a cautious editorial, "Kids Today" in Barron's, skeptically voicing that the boom in technology/Internet stocks would end in disaster for most traders and investors. AOL's shares eventually fell by 85% -- to this day, it was one of my greatest shorts. AOL had company, for as many recall, the Nasdaq ultimately fell by 75% from the 2000-2001 high. In the second half of 1999 and into the early 2000s, I participated in a number of interviews with Barron's Alan Abelson in which I expressed a negative view directed toward the shares of AOL (later turning more positive). I predicted a steady decline in subscribers as the ISP space became more crowded and competitive -- I was correct -- and for the Internet sector in general. After the merger with Time Warner (TWX) in 2000, the shares fell from the $70s to $10 share. Finally, I invented a "Stock Market Super Bowl Indicator," and my first one (published by Alan Abelson) cautioned that danger was ahead for the Internet sector based on mushrooming in ad spending back in 2000-2001.
- The Facebook IPO fiasco. Additionally, last year I wrote an out-of-consensus negative analysis of Facebook (FB - Get Report) well before the company went public. Months before the Facebook IPO, I opined that it would be a grand failure (beginning on the first day of its public offering).
Kass: How Tweet It Is
Oct 28, 2013 | 03:30 PM EDT
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