The Internet Is Dead (As An Investment)

I can live all day inside the Internet. I can talk to my friends, listen to music, watch TV, trade stocks, play games, do work – all on the Internet. From 6 a.m. until 10 p.m. every day I can spend on the Internet and it would be a day well spent.But run for the hills when it comes to advising clients to invest in the Internet.Columnist and portfolio manager James Altucher explains to Simon Constable why Google, Facebook and other internet plays are dead from an investment standpoint. Plus what stocks are hot in the rest of the economy.The days of infinite margins, 1,000% productivity gains, and growth of market throughout the universe are long over. Internet companies now should be treated, at best, like utility companies that get bought at about 10 times earnings and sold at 13 times earnings. Even then, I’m not sure I would give the Internet sector the same respect as the monopoly-protected utility sector.
http://online.wsj.com/article/SB124784696163158721.html

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