Goldman Sachs made a qualified prediction that the Internet bubble is back, judging by an increase in IPOs in the industry and VC's sometimes undesired generosity. The firm said the time for Internet companies to go public is now, while deals like eBay-Skype and others still linger in the market's collective consciousness. A key barometer of the bubble is that top Internet companies are trading at barely 40 times their future price-to-earnings ratios, and Yahoo! is trading at nearly 300 times its ratio. Goldman claims that this time around hype will not drive an Internet company's success--having a clear Internet advertising plan will. Blog
