Unlike many Internet companies that exploded during the dot-com bubble, then quickly fizzled out without ever showing any semblance of value, some stocks in this sector today aren’t in nearly as much danger of living shortened lives.
For example, Facebook (FB) rose 140% over the past 52 weeks and is now supposedly worth more than $140 billion. If you place any merit on Princeton University and its recently released study, the online social butterfly is in the early stages of abandonment by users and stands to lose 80% of them by 2017. Facebook’s revenue growth of 60% in 2013 came as a result of mobile users, but without another segment to tap, that percentage will likely decrease as the years go by.
I’ve seen estimates for the fair value of Facebook stock as low as $12, a far cry from the current $57.
Here’s another : The quarter before Twitter’s (TWTR) IPO in November 2013, the social networking site lost $64.6 million, had a long history of not making a profit, yet was valued at $24 billion on Day One and $35 billion today … or 31 times projected sales. It’s not expected to make one cent in profit until 2015 at the earliest. Ah, but instead of losing 18 cents a share like it did in 2013, it is only projected to lose 4 cents a share this year.
Meanwhile, the sell-off in emerging markets this week continued to hit Wall Street, making this January the worst month since May 2012. The Dow fell 5.3% and the S&P was off 3.6% for the month.
But, on the following pages are 3 internet companies that know how to redefine themselves in the face of fading fads while providing multiple and unique services to keep turning out expanding profits…
… While their stock prices managed to finish the month on a high note.
Rescue Your Retirement! Quick Video reveals 3 Step “Blueprint” To A $1,000,000 Portfolio. Get The Blueprint Here.