Is 'Web 2.0' Another Bubble?

Carl Bialik from WSJ writes "Two tech VCs, Todd Dagres and David Hornik, debate whether there is a bubble in so-called Web 2.0 companies looking to cash in on a resurgent online ad market. In the WSJ.com debate, Hornik writes: 'Venture capitalists will rationally stop investing in ideas that don't bear fruit. Those that do bear fruit will gain traction and either be acquired or go public. Those are the traits of a rational market in my mind.' Dagres responds: 'I think the Web 2.0 space will have a higher mortality rate than other segments of the overall media and technology industries. There are far too many MySpace and YouTube genetically challenged clones. All but a few will fail. The winners are generally the ones that get in early and out before the bubble bursts. There are rare examples of bubble companies making it through the bust and going on to become successful and valuable companies. By the way, the combined cash flow of Spot Runner, LinkedIn and Facebook is less than that of one Costco store.'"

Comments

Web 2.0 Is Another Bubble Meme

[broward]

Yes, it's another bubble which can ultimately be traced back to fiat money even if Google's stock can't see that its growth inflection point has passed and competition (such as specialized, differentiated engines) is growing. I've been testing out http://www.hakia.com/ and it is occasionally closer to what I'm searching for than Google.

MySpace meme has peaked -

http://www.realmeme.com/roller/page/realmeme/?entr y=myspace_meme_successful_prediction_update

Social Networking meme has peaked -

http://www.realmeme.com/roller/page/realmeme/?entr y=social_networking_meme_verified

Search Engine meme has peaked -

http://www.realmeme.com/roller/page/realmeme?entry =search_engine_comparison

Information has a finite value.
It may not be measurable, but it is finite.