Which Internet Stock Is the Most Overvalued?

This was the week that some Internet stocks hit an air pocket. Twitter, LinkedIn, and Pandora all fell sharply after issuing earnings reports that disappointed Wall Street. Relative to the rest of the market, though, online companies are still valued highly, and their prices have risen significantly. On February 6, 2009, the Nasdaq Internet index, which consists of eighty online companies, closed at 83.80. On Friday, five years later, it closed at 400.34. That’s a rise of more than four hundred and seventy-five per cent.

Which raises a question: After this week’s fall, which Internet company is the most overvalued?

...read more