Tuesday, July 24, 2007

Andreessen: Ops, I Did It Again | Digital Daily | John Paczkowski | AllThingsD

Some scary signals that Bubble v2 may be in overdrive...

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At that price, Andreessen–who owns nearly 6.5 million shares–stands to make $92 million off the deal. Which is a nice bit of validation, given Opsware’s inauspicious beginnings as Loudcloud, a managed hosting company remembered more for a string of heavy losses and a lackluster 2001 IPO.

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And for Andreessen, whose first start-up, Netscape Communications Corp., marked the beginning of the Internet boom of the late ’90s, it’s proof that contrary to what F. Scott Fitzgerald wrote, there are second acts in some American lives.

Speaking of second lives, from today's WSJ: Amazon Shares Defying Gravity Once Again

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A river of money has flowed into shares of Amazon.com. They're up more than 80% year to date.

On the face of it, Amazon might still look like a good stock to own. Analysts surveyed by Thomson Financial expect the online retailer to report today that it earned 16 cents a share, excluding one-time items, in the second quarter, more than triple last year's five-cent gain. Sales of the last Harry Potter book could help fuel earnings in the current quarter. Amazon booked more than two million pre-sales before the book even hit brick-and-mortar stores.

Looked at another way, however, Amazon is looking more like an Internet bubble stock of yesteryear. At $71.74 a share, it trades at 121 times last year's earnings, making it much pricier than highfliers Apple and Google, both of which have price-to-earnings ratios of around 45 times. (The lower the P/E, the cheaper the stock.)

Andreessen: Ops, I Did It Again | Digital Daily | John Paczkowski | AllThingsD

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