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?
