JPMorgan Predicts 2008 Will Be “Nothing But Net”. Interesting, but, as with the .com bubble, you really have to wonder where they'll get the revenue.
Media has always had convoluted revenue streams, but I'm extra dubious about the net. Take Facebook: okay, so they make money from advertisers paying them, based on Facebook's huge user-base. But where is the evidence that those users actually spend money on those advertisers based on the Facebook advertising? Click-through advertising is based only on clicks, not on customers. My ad click to purchase ratio is all but negligible: in fact I can only think of one instance when I bought something based on an online ad.
So, where's the intrinsic value? These companies are creating revenue and huge valuations, but what is it all based on?