Excite also can thank Internet stock mania for its ranking. But to justify their vaulting valuations, portal companies have to establish a stranglehold on new Internet surfers, and analysts differ on the portals' odds of success. Chris Charron, an analyst at Forrester Research Inc., sees more consolidation ahead, precisely because the portal space is beginning to prove itself. This market is screaming in terms of the Internet portal stocks. People want to make sure they don't miss the boat.
Media companies are the logical buyers.
But even as the bloom seems to be on the rose, Oakes is becoming cautious. The success of retailing sites depends on how many goods they move and at what price. With portal sites, content is not exclusive, ad support could disappear, and other sources of revenue are largely unproved. And there could be new expenses. Oakes figures, for instance, that Internet service providers could start charging the portal services for access on the home pages they create for their customers.