Bill Gates: Internet Bubble Is Back

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"We're back kind of in Internet-bubble era in terms of people thinking: 'O.K., traffic. We want traffic. We want traffic,'" Microsoft Chairman Bill Gates said. "There are still some areas where it is unclear what's going to come out of that."

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Founders Note:
I don't like that word 'Bubble'. It implies an implosion like 7 years ago.

The risk may be founded.. but I think people have learned alot from the last boom.. like real revenue models for example...

Comments

>>but I think people have learned alot from the last boom

Like YouTube, MySpace and Goog?

Of course he would call it a "bubble"

The internet is the greatest threat in existance to MSFT. Microsoft moves really slow, releasing shitty new products every few years, relying on its stragglehold on the Office market it carved out in 1996. The internet moves lightning quick, a company with 20 people could reduce Microsoft to rubble with the right internet based office suite. So take what Bill Gates says with a grain of salt on this particular subject.

Like YouTube, MySpace and Goog?

Well with the myspace and youtube issue.. the answer is no.. they are bubble sites... Google however is viable (though the stockmarket has it valued multiples of what it's really worth).

Like YouTube, MySpace and Goog?

Google makes several hundred million in cash every quarter. Pretty solid business there, don't you think?

Youtube and Myspace are "bubblish". Both have a huge upside if managed correctly. I agree with NYNerd. Bill Gates is sweating the internet right now, of course he's dogging it.

Bill G has a point

I think he is right on some level. While there are very solid businesses on the net, I have seen more than a few VC backed startups burn cash and implode over the last year and a half. Some have blown large sums of money buying traffic without thinking about ROI or profitability.

Could you give some examples

Could you give some examples of companies burning through vast sums of VC cash and imploding? Curious, thx.

"I think people have learned

"I think people have learned alot from the last boom.. like real revenue models for example..."

Yep - build the site, hope people stay, hope to slap banners on. Nothing like Web 1.0 at all. ;)

Where are the IPOs?

If it's a bubble It's not the same sort of bubble first time round every man and his dog were fighting to buy a chunck in these compaines. youtube, digg, myspace et al would have IPOd. Now it seems it's just other companies fighting to buy chunks of other companies.

Might have something to do

Might have something to do with this kind of thinking: TV viewing and newspaper circulation are dropping due to the Web; let's buy some Web properties that get lots of eyeballs.

offtopic

Goog is only justified due to brand. Remember it's still mostly a one trick (ppc fraud) horse.

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