Commentsby
Bob Brandon....
Webdollar$
April
19, 2000
Like an icy bucket of water in the face, Wall Street suddenly fell out
of love with high tech issues. Suddenly, thousands of paper millionaires
watched helplessly as literally rivers of their money flowed away. It's
an interesting, but predictable correction, and one that holds some hidden
dangers to the future of the web as we know it.
The big money boys pride themselves on not being swayed by fads and
phases. You have to keep the long view to succeed in the market. You have
to avoid flash-in-the-pan, unproven investments. That's why it was interesting
that venture captalists fell so hard for dotcom stocks.
Here's a group of companies that don't make anything, including money.
Yet they're valued in the hundreds of millions, all on the "potential"
of huge earnings, "someday." Their top brass has been rolling in dough.
So much money, so little time.
Up until recently, the stock market behaved somewhat like an ocean wave.
Slowly building, cresting and then gently subsiding. Major, earthshattering
shifts in the index were rare, and most traders liked it that way. Then
everything got overheated by the infatuation with digital dollars.
Let's face it, technology can be very sexy. And so, high tech workers
would often settle for lower salaries in exchange for stock options They've
been buying houses at above market value, luxury cars, and other descretionary
doodads. It's been one huge nouveau riche buzz. Suddenly, the foam has
flattened on their designer coffee.
The e-money euphoria has evaporated. Now instead of slick presentations
and fantastic promises, these companies are going to have to begin to actually
earn their own keep. It's not impossible, but it's gonna be a hell of a
shock. The internet has spawned an entire society of highliving, fast talking
stock millionaires.
In many instances, it's going to be Easy-come, Easy-go. But for the
true innovators, this correction in the market is the best thing that could
possibly happen. It'll shake out the imitators, and lookalikes, leaving
incredible opportunities for those who can make themselves necessary.
There are some very big companies that have very big plans for the future
of your internet. It may be good, considering the technological innovations
big money can buy. But it could come at a hefty price. If the huge corporations
continue to combine and congeal, we're going to lose the quirky, decentralized,
somewhat chaotic nature of the web.
It's eclectic, and it's alive. Let's keep it that way. Support smaller
sites, and resist the machine. Otherwise, you can kiss true freedom of
speech adios. |
