Article: Revival of Dot com's?

The era of dotcom demise is being followed by a slow rebirth. Writing
about the various sources of revenue for Web portals, Author explains
why he continues to be surprised by the strength and resilience of
businesses on the Web

The dotcom revolution of the yore has all but vanished from our
collective memories, replaced by the reality of the protracted tech
slump and the ongoing slow revival. Though the e-commerce hype that
was predicted is not likely to materialise, business magazines have
been extremely gung-ho about the turning tide. Google's much awaited
IPO is expected to be a turning point though other Internet
businesses, including Amazon.com and eBay, have been posting steady
profits. As an armchair observer of the trends during the nineties, I
continue to be surprised by the strength and resilience of businesses
on the Web. An aspect of the heady days of the Internet that is yet to
really come to the fore is the atrocious valuation of online
businesses, though many listed companies continue to be traded for P/E
(Price/Earnings ratio) multiples of over twenty or thirty. Is this a
realistic valuation, if not how else can one go about valuing online
ventures is a question I have been deliberating.

To set the stage for the debate, I will not take examples of any of
the ‘biggies' like Yahoo or Google but a ‘small' portal I have been
associated with. I wish to mention at the outset my affiliation with
Garam-Chai.com, the portal we will use

Check out the two part feature on online portals and valuations:
Revival of interest in Web portals
http://www.garamchai.com/mohan/ITP19Jul04.htm
Web commerce ventures
http://www.garamchai.com/mohan/ITP12Jul04.htm

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