Partying Like It's 1999
We take a look at a large and liquid Internet ETF. Beware bubbles and monitor valuations.
As United States equities continue to hit all-time highs, one of the dynamics capturing plenty of attention in recent weeks has been initial public offerings of high-tech companies and, in particular, Internet firms, such as "Candy Crush Saga" game maker King Digital Entertainment (KING), which went public last week, and Chinese Internet colossus Alibaba Group, which is preparing to list in the U.S.
Meanwhile, for other large, already-public Internet companies, performance has been mostly positive. Some, such as Facebook (FB) (which has returned 147% over the past year), Google (GOOG), Amazon.com (AMZN), and Priceline.com (PCLN), sit near all-time highs. Others have struggled of late, including Twitter (TWTR), which trades above its IPO prices, and small fries such as EarthLink Holdings (ELNK).
Robert Goldsborough does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.