As if you didn’t have enough incentive yesterday when we talked about the top 30 internet millionaires under 30, JP Morgan’s Internet analyst Imran Khan just put out a report 312 pages long called “Nothing but Net” that says 2008 will be the year for Internet companies.
In 2007 the S&P 500 gained 5% while Internet stocks soared with a 14% average gain. The 2008 forecast is even more bullish as Internet stocks are expected to earn a 34% return versus only 8% for the overall S&P 500. Expected big winners include: Google, Amazon, Yahoo, eBay, Expedia, Salesforce.com, Ominiture, ValueClick, Monster.com, Orbitz, Priceline, and CNET.
The increase in broadband penetration is fueling the growth but what’s even more exciting for any online entrepreneur is that the US online ad spending is rising faster than broadband penetration. This means that the average ad spend online will grow faster than the rate of high speed internet adoption. CPM Advertising, which averaged $3.31 in 2007, is expected to rise to $3.44 in 2008, $3.60 in 2009 and $3.86 by 2011. For anyone who has a website and is selling advertising – this is a very good thing!
If you’re hoping to cash out of your online business, the JP Morgan report also expects Internet acquisitions to increase in 2008 as top companies like Google, Yahoo, Amazon, eBay, and Expedia all are expected to have more free cash than they had in 2007 to use to buy into new businesses.
Isn’t it about time that you got online?
This is good news. It is such a dichotomy, though, because you also have people saying we’re going to go into a recession soon. So, who the heck knows. I just hope all these recession people don’t bring on a self fulfilling prophecy.
good news alright.. but yeah good point david also. I’m in Australia but the state of the US economy has a considerable flow-on effect down-under. (as it does on the rest of the world…)
The Web 2.0 millionaire phenom is a fact but how many go down trying to get that big score. If you look at the home runs n the net in the past few years there really isn’t a common thread except a mass market service site that struck a need. Some skill, but a ton of luck involved as well.
I am always amazed by the great posts we get on this subject. Bottom line – if you can be prepared for failure, try, go for the gold.
Well, remember the dot com burst ? http://www.forbes.com/2003/01/06/cx_da_0106topnews.html
I’m always wary of Wall Street’s report. When they overhyped it means the top is near
The thing that we must all remember is the fact that many dot com business owners will realistically only go so far because of the heavy dedication that it takes to push a website.
Starting a website isn’t that much different than starting a mom and pop store hoping to one day grow into “Wal-Mart” status. This is very excellent info to hear for those who plan to keep soaring in the business and actually carry out the actions!
Dwayne Lattimore
I’ll make the 30 millionaires under 30 list.
If everything goes as scheduled, I’ll be launching a website early 2009.
I’ll be sure to update this when we do.
People try to establish themselves with “niche markets,” I’ve created a niche through utilizing certain market niches uniformly to create what I’d call a single niche. Something to look forward to, hopefully.