The Pricing of internet stocks

The technical note recreates a report written by a consultant to his clients which, far from trying to justify the valuation of Internet stocks, attempts to be a map to guide unaware investors through the madness of investing in these shares. It covers several interesting facts and opinions about Internet companies, analyzes the rationale behind the low supply and the high demand for Internet stocks, discusses several methods currently used for valuing these stocks, and finally argues that maybe not eveything is as crazy as it may seem.