Peter Thiel, founder of PayPal who now works for Clarion Capital, says in an interview with Bambi Francisco on CBS MarketWatch that Internet stocks are now "badly overvalued". Why? Stocks have risen dramatically in the last few months, insiders are selling, and positive Internet trends are already priced-in. He also believes that the expensing of stock options next year will hit reported earnings of Internet stocks.
He specifically mentions Google and eBay as stocks that could perform poorly next year.
To put this in context, Thiel is a bear on almost everything other than the Internet. He thinks there's a property bubble in the U.S., believes oil will hit $80 to $90 per barrel, is bearish on the dollar, and thinks the U.S is headed for deflation. He's still investing in early stage Internet companies, though.