eb 2.O is all the rage in the Venture Capital/Tech community. It’s a little like the VC’s funding of the non revenue generating or ad revenue only dot-com enterprises of the late 90’s.
Steve Rubel posts today that Yahoo’s missed earnings projections may signal a Web 2.0 crash.
So Yahoo missed its analyst’s estimates today and the stock is already down 13 percent after the close. If Yahoo can’t make its analyst’s numbers then clearly online advertising isn’t growing as fast as we would all like to think or hope. Keep in mind that Yahoo missed its estimates in a good advertising economy!
But unlike 2001, don’t write off the Internet, Web based businesses, blogs and RSS because of a correction in the Internet financial market. Many companies, LexBlog included, are providing a valuable service at a reasonable price. Such ‘Web 2.0 companies’ derive revenues through the sale of services and products providing customers a good ROI. These companies and their products are not going away.