December 26, 2000, 9:55 AM

The Struggle for Profitability

(Page 3 of 3)

In the end, some say, the stock price will never depend on whether an Internet retailer becomes profitable. “Nobody is buying these stocks based on profits,” says Analyst Berry. The stocks are so wildly overvalued right now that even if they did begin to post profits they would still be wildly overvalued. “There are not enough consumers on earth to justify the valuations,” he says. Trading, says Berry, is based on people thinking that stock prices will continue to rise forever. “Search engines reached their peak, and e-commerce will sometime soon,” he says. •

Elayne Robertson Demby is a Weston, Conn.-based freelance business writer.


Sign In to Make a Comment

Comments are moderated by Internet Retailer and can be removed.

Not a member? Signup for free today!




Relevant Commentary


Jason Squardo / Mobile Commerce

Five tips for achieving high mobile search rankings

Searches on mobile devices will soon exceed those on computers, Google says. Retailers that keep ...


Sergio Pereira / B2B E-Commerce

Quill turns to its B2B customers for new ideas

Coming in April is a new section of that will let customers and Quill ...