Amazon recently reported in line with consensus and profitability seems to be in the not too distant future. Ebay reported positive earnings and forecasts look good. Aol and Time Warner's merger seems to be moving forward and prospects are rosy. Yahoo, after suffering turmoil with a new CEO and turnover in their top management tier, seems to be coming back into favor with Wall Street. Many companies have declared bankruptcy or are struggling.
Some stocks have cash on their books which is worth more than their total market value.
While they may have cash on their books, if they don't have a revenue model which makes sense, the cash will be used to supplement cash flow. But the companies lending and investing into these sectors have become much more discriminating and earnings now matter. A few companies do seem to be approaching profitability, are dominant in their category and often have big backers. They are expected to report positive earnings in 2002. They recently reported profitability a year ahead of expectations.