I don't think so. I don't know the answer to whether the Internet sector is overvalued or undervalued, but . . . Today internet companies are primitive compared to what they will be in five or ten years, Bezos told MBA students who filled the auditorium and two overflow rooms Feb. 15.
E commerce is as bad today as it's ever going to be.
And it's good enough now to attract 17 million customers. Bezos said he thought traditional bricks and mortar firms are Amazon's chief competition, not other electronic retailers. This is a huge market so there's room for lots of winners. Also, the competitive framework of the internet changes so dynamically that if you base your strategy on what your competitors are doing, you have to change your strategy every day. If you base your strategy on what your customer actually needs, it evolves so much more slowly that you will have a more durable and robust strategy.