Very enlightening, the former kings of the Internet at the peak of the hype in the spring of 2000 - in retrospect - to undergo such a reality check. Jeremy Siegel in his classic book "Stocks for the Long Run" graphic to the right. Siegel then lists the nine most important Internet-/Technologie-Aktien PERs with over 100, including growth rates in the five previous years and the forecast of analysts' growth for the following year.
These predictions seem in retrospect like reading tea leaves. Even eleven years later not one of those listed (ex-) star only in the vicinity of the former courses. With Nortel Networks to complain there is even a bankruptcy. Make no mistake: From typical hype shares with illustrious names such as CMGI, Inktomi, Exodus (anyone knows?) Or Lycos is not here mentioned. It's about the real blue chips of the time.
Nevertheless, the results are devastating: AOL, which once had as much in terms of sales of smaller Internet service providers swallowed the media giant Time Warner, staggers towards insignificance. The share price of Cisco Systems, which have since been at least once a doubling of earnings brought about, and still the world leader in routers are is a tragedy. The market capitalization is only about one-fifth of the former highs. As the number of outstanding shares (eg through stock options) is significantly higher than when the share price performance is even worse.
An elephant is high time to also report: Sun Microsystems has since been acquired by Oracle. Cause for joy is still not: Taken together, both companies are now worth less than when each one individually. Has still beaten the best Qualcomm, which dominate the CDMA-standard mobile long patent in the U.S.. Even Qualcomm still not to the highs seen in 1999 comes around. By the way: a value such as eBay, have become in fact the Dominator at Internet auction sites listed, now barely above the highs of 2000, was so in the last eleven years is anything but a good investment for shareholders.
These predictions seem in retrospect like reading tea leaves. Even eleven years later not one of those listed (ex-) star only in the vicinity of the former courses. With Nortel Networks to complain there is even a bankruptcy. Make no mistake: From typical hype shares with illustrious names such as CMGI, Inktomi, Exodus (anyone knows?) Or Lycos is not here mentioned. It's about the real blue chips of the time.
Nevertheless, the results are devastating: AOL, which once had as much in terms of sales of smaller Internet service providers swallowed the media giant Time Warner, staggers towards insignificance. The share price of Cisco Systems, which have since been at least once a doubling of earnings brought about, and still the world leader in routers are is a tragedy. The market capitalization is only about one-fifth of the former highs. As the number of outstanding shares (eg through stock options) is significantly higher than when the share price performance is even worse.
An elephant is high time to also report: Sun Microsystems has since been acquired by Oracle. Cause for joy is still not: Taken together, both companies are now worth less than when each one individually. Has still beaten the best Qualcomm, which dominate the CDMA-standard mobile long patent in the U.S.. Even Qualcomm still not to the highs seen in 1999 comes around. By the way: a value such as eBay, have become in fact the Dominator at Internet auction sites listed, now barely above the highs of 2000, was so in the last eleven years is anything but a good investment for shareholders.
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