Twice-Shy Funds Still Smitten With Net's Big Three
from the gotta-find-somewhere-to-invest dept
An interesting look at how various institutional investors are (once again) driving up the stock prices of the "big three" internet survivors: Amazon, eBay and Yahoo. The stocks of all there have done quite well this year, due to plenty of institutional buying. The writer is afraid this is leading to unrealistic expectations for the companies. It's not a huge surprise that this is happening. No matter what people went through during the boom/bust cycle, people still love the idea of investing in technology. Now that there have been some signs of a recovery (whether or not they'll last), the institutional investors are looking for the survivors since they assume making it through is a show of strength (plus, there really are no new IPOs for them to buy into). So, they end up putting their money in the big three, because that's the only choice they have. Of course, if the stock keeps rising, it should open up the window to more tech IPOs, and will allow the funds to start spreading around their money a bit more.
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