It is a bloodless revolution. We are transforming the world into a better place. Infoseek Corp. have for months outdone the mostaggressive projections, and even after some sizable drops last week theyremain overpriced by conventional measures. The models analysts and financial advisors usually use to judge acompany's worth just do not apply when it comes to Internetstocks. Yahoo, the most popular Internet directory, averaged some 95 millionpage views per day in March, up from 65 million lastDecember.
Faith is one thing when a stock is cheap and the future looks bright.
But in the wildly over-valued Internet sector, there aresigns some investors are starting to look for more. For one thing, there is concern that even if all the most optimisticprojections for Internet use prove true, not every companyproviding an online service will reap the rewards. This became a nearer-term fear last week amid talk that Netscape, thepopular Internet browser, may drop deals to carry linksto other Internet directories. Netscape Communication Corp's Web site currently contains links toYahoo, Excite, Lycos, Infoseek and other search sites,in effect diverting millions of users to competitive sites. The companyis now renegotiating those deals, which expire in June.