The late 1990s-early 2000s explosion in technology stocks is a story well-known to those who have even a passing familiarity with the stock market. Some thrived, while others declined as quickly as they had risen. Throughout the first half of 2011, various internet-based companies have shown success similar to the tech boom of the previous decade’s early years.
According to Reuters, some consumers are willing to invest accordingly but others are less optimistic about companies including Facebook, LinkedIn, Groupon and others. Still others appear to be hedging their bets, watching the market with eagle-eyed curiosity to see how these stocks progress.
Tom Roseen, head of research services at Lipper told the news source, “People got burned so badly that they have been virtually ignoring that area.”
As an example of the uncertainty of tech stock futures, LinkedIn went public in May and quickly reached its yearly stock high of $127.19 per share. Many saw this as a positive development, but in mid-July the shares fell by 7.5 percent in a single day after an unfavorable analysis from a JPMorgan affiliate.
According to The Wall Street Journal, internet-based companies are still seeing noteworthy investments, as with Zillow Inc, a real-estate site that tripled its value when it went public on July 20.