Internet bubble, not the same as the first?

Just thinking, the first bubble saw billions injected into companies that either had a flawed or non existent revenue stream or business model. Will the next bubble be both over valued start ups and existing companies with issues (I figure that is the best way to broadly classify some existing companies). 

Newcomers that will most likely fall flat at some point …

Groupon is the top of this list for me and I have gone on and on about this in previous posts. I don’t think they have a long term plan that will carry the business forward over the next few years. Retailers will continue to realize the offering isn’t so hot, the lawsuits will continue to come forward and various laws will most likely not help. Time to move on. 

What about some existing companies?

Looking at a company that has been around for a while, AOL. It seems like they are attempting to buy popularity and viewers, but how long can this continue? It seems they are not having much luck making long term investments, Bebo was a bit of a failure and Engadget wasn’t any better (not when all your editors jump ship). Some recent purchases are interesting to say the least, Huffington Post being an example … Seems to be an over priced purchase given revenues are small and profits even smaller. AOL will surely be an interesting company to watch, what will they look like in a year or even five years down the road.

And one last company, MySpace. If recent media reports are correct and the site is loosing $100 million + a year, then this comapny will surely flop completely soon or be reinvented for some sort of small niche market. Doesn’t look good for them.

Valuations or founders financial dreams lately have been unrealistic and unsustainable, something has to give. Innovation has been pushed to the side and buying seems to be easier, but will this offer long term success. Over the next 12 months I would guess that a number of companies are going to fade away or be completely reinvented. Any thoughts on this or companies you think will be a flop, fade or success?

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