The Long-Term Value of Internet Companies

A decade after the last technology bubble burst, the signs are everywhere that it is happening again.

Look at what’s happened to the highly publicized initial public offerings: Facebook’s value has declined $30 billion since its I.P.O., costing investors nearly half their investment. Zynga shares have plummeted. Groupon shares trade at such an extreme discount that there should be a Groupon for them. Pandora’s stock, once $17, has touched $7. Companies like Friendster and MySpace, meanwhile, toil in oblivion.

http://dealbook.nytimes.com/2012/08/03/the-long-term-value-of-internet-companies/