Liking the Internet Big-3 Long-Term

Excerpt from our One-Page WSJ Summary:

With Buzz or Not, Internet Shares Still Hold Promise

Summary: SmartMoney columnist James B. Stewart is maintaining his holdings of the Internet Big-3: eBay (EBAY), Google (GOOG) and Yahoo! (YHOO). He notes that more than anything else surrounding struggling Internet stocks it's the lack of buzz for them among investing trendsetters and the media. He admits to missing some of the excitement and gains of years past, but having made a long-term commitment, he says, "I don't see that so much has changed except a predictable slowing in the growth rate of what have become more mature, large businesses." Stewart is optimistic on Yahoo! citing the importance of search ads (think Yahoo!'s forthcoming Panama search-engine program) over display ads. And he likes eBay's monopoly status and advertising opportunities. He concludes, "At these levels I'd be a buyer of Yahoo and eBay, and even Google if it drops further." Stewart suggests buying shares instead of options given high premiums.
Related links: Full WSJ article • Internet Advertising Stocks: Quarterly Revenue Growth • Where Was Yahoo When The Ads Were Handed Out? • Piper Jaffray: Yahoo Selloff 'Creates Buying Opportunity' • Yahoo! Lowers Guidance Expectations - Investors Unload Shares • eBay's Core Listings Remain Solid - Shares Remain Materially Undervalued • eBay: Runaway SG&A Expenses Dragging Down The Stock • eBay/Google Ad Deal Takeaways: Little Upside for 2006 • Phil Davis' Google Play -- Round Two Update • A Long Google/Short Yahoo Paired Trade Revisited • Conference call transcripts: eBay Q206 • Google Q206 • Yahoo! Q206 •
Potentially impacted stocks and ETFs: Internet HOLDRs (HHH); Other "big" Internet stocks: Amazon (AMZN), CNET Networks (CNET), IAC/InterActive (IACI), Monster Worldwide (MNST) and Time Warner's (TWX) AOL

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