Internet stocks are trading at levels well above the value of the assets and the earnings streams. There are two aspects of this model. First, sticky sites are going to be able to shop around for better deals with investment firms. The company has a strong following. In addition, if the site is a sticky site, the IPO is more likely to be a success.
Stickiness increases the attractiveness of the stock.
A public company's main goal is to increase the value of the firm to its shareholders. As the public becomes aware of a sticky site, investment in that site increases, therefore increasing the value of the firm. However, if examination of the first site is both stimulating and pleasurable, the consumer is more likely to engage in exploratory behaviors on a second site, including browsing, unplanned purchasing, and seeking out unusual products or categories. This is an interesting issue for both web sites and users. Web sites are looking to keep people at their site.