Excite will have to increase its subscriber numbers much more for the stock to become interesting, says CIBC World Markets analyst John Corcoran. Even at seemingly firesale prices, however, broadband looks risky to many analysts. He notes that the industry is in the midst of a technology shift as new, optical systems are installed. That makes picking winners and losers risky. And customers who do sign up often find that installation takes forever and service afterward is deplorable.
Some companies are better bets than others, of course.
It's a good bet that most DSL companies will be consumed by the Baby Bells. Trouble is, broadband share prices could tumble still further before that happens. To weather the storm in the meantime, several DSL companies, including Northpoint, Covad, and DSL, have reduced the number of lines they plan to lay down in the future. Bid on or offer business services Web design, logo design, computer consulting, and more. Business Week Online may receive a share of any fees you pay for services.