So the next stop is the "middle 20". These are publicly traded web technology stocks with a market cap over $1 billion. In our analysis below, more than half have a PEG below 1.0, which tends to signal "bargain opportunity" to investors. (caution: of course that is only a starting point for analysis, there could be some real dogs in there). Check out this chart:
So, it is official - there is no bubble in public Internet stocks. There might be in private valuations, but that is almost impossible to analyze accurately without access to hard data on late stage VC valuations.
Anecdotally, it does look like private valuations are higher than public valuations. That is a very odd reversal of normal market rules and will create problems at some stage - the shares have to be sold to somebody who will pay a higher valuation.
A reminder to participate in our weekly poll, about the top Internet companies: