The Economist magazine has a story in their next issue entitled
Enthusiasm for Google drains away as doubts set in. The article talks about the recent fall in the Google stock price after Davos and there is nothing earth shattering in the article but I was taken aback by the market chart they included in the article as I hadn’t realized how steeply the Google stock had fallen. The one interesting point that that article raises is about we value these Internet companies – Traditional model of 20x earning for a bricks-n-mortar company doesn’t seem to work for technology companies and a debate on valuations is sorely needed before Bubble2.0 implodes.

Here’s a shot from Yahoo Finance comparing Google, Yahoo, Amazon against NASDAQ:

Guess Yahoo’s not having a great 2006 either.

google, yahoo, amazon, the+economist, stock+market, bubble2.0, web2.0