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Has The Web Bubble Burst?
September 19th, 2006 by Jon Waraas


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Yahoo’s CEO Terry Semel told investors that ad revenue from the automotive and financial sectors are dropping. Since then Yahoo’s stock (YHOO) has dropped 11%, Google’s stock (GOOG) has dropped 3%, Ford’s stock has been dropping for the last few days since they laid off 1/3 of there work force, there stock (F) is at -2.05% right now. Microsoft’s stock (MSFT) doesnt seem to be hit at all, and I have been watching Apple’s stock (AAPL) for the last hour and they keep going up and down.

Which leads me to my next point, do you think the web bubble has finally burst? With advertisers spending less money on advertisements, do you think that will put a leverage on all these web 2.0 websites?

Or do you think that the web bubble is just starting to get blown up? Since its going to be so cheap for advertisers to buy advertisement, that will push more people to make creative websites to get there hands on the money.

Is there going to be a affiliate marketing bubble soon? Are we going to see everyone and there moms selling stuff online? The TechCrunch.com said - I think there’s still every indication that long term consumer trends point towards greater economic activity online due to decreased overhead, etc…

I’m not sure what will happen now, I’m not no old veteran that has been watching the Internet for the pasted 20 years. But whatever happens, I hope out economy goes up giving everyone a fair advantage to make some real money…

The real estate market has been leveling off around here. In my region, people buying houses over $250,000 has dropped 1/3 since a year ago. However, houses under that have gone up in demand.

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5 Comments

Comment by Cody
2006-09-21 06:20:00

That’s because we have so many poor people compared to the rest of the country :P. The aliens all can’t afford houses over $200k

 
Comment by Jonathan Waraas
2006-09-21 12:24:00

That’s going on everywhere though also. Especially bigger city’s.

A good article - http://www.calacanis.com/2006/09/10/flippers-in-trouble/
:)

 
Comment by Jan
2006-09-21 18:17:00

lol the web bubble has not burst…..

yahoo’s comments are tied into two very specific sectors, housing is slowing down thus lenders aren’t spending the big ad bucks like they were last year, and people haven’t been buying cars lately and the companies didn’t really have any huge promotions lately to create an ad blitz……

However, the economy will be in for a rough go around the next little while until the fed cuts rates.

 
Comment by Anonymous
2006-09-24 16:10:00

Jan is spot on. The slow down in those industries have to do with interest rates climbing and keeping people from borrowing more money. There is no “web bubble” in sight for online advertising. They hit Yahoo’s financials hard because those are the highest paying sectors.

This is a good article on the Yahoo’s situation http://www.moneyweb.co.za/shares/international_news/188824.htm

Overall online spending will only increase as more and more people use the internet for purchases.

According to Jupiter, it projects that online ad spending will reach $15.7 billion this year and $25.9 billion by 2011.

http://www.ebusinessnews.info/?action=read&article=123

Looks good to me ;)

 
Comment by jack ash
2007-11-30 16:32:18

Now that the us dollar is so weak, I’m sure the web bubble won’t burst… at least not for americans… Since it’s not as profitable for Europeans, Canadians, Aussies and others to market in the US, it should open up more space for americans to sell to americans via online marketing.. but we’ll see I guess.

 

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