The Fall of the The Stock Market and Web 2.0!

Written by Zac Johnson
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Once again, the stock market has a horrific morning, crashing to new lows, then starts to show life at the end of the day, then fizzles in the negative again…. and who knows when the chaos will end. On the same day that Microsoft’s stock hits a 10 year low, I thought it would be fitting to profile a few internet stocks and some names that we work with on a daily basis.

Below is a one year chart of stock companies we work with on almost a daily basis. Google, Microsoft, Yahoo, eBay, ValueClick, InterActive Corp and Amazon.com

HTML clipboardAs you can clearly see, a year ago a few stocks were doing alright and actually positive… since then it’s been a steady course, then a massive downfall as of lately. So where does this leave us and what does it all mean? While many are predicting the end of Web 2.0… others are still flourishing and making more money than ever. Why would the crashing of the stock market and economy result in the end of Web 2.0? Sure, people/companies are losing money and it will probably be a lot harder to get funding… but the best of us are still marketers and can adapt to the changing times.

Just take a look at Twitter, people are discussing what they are working on 24/7 a day… no one is boo-hooing and talking about how they are sitting around and not spending a dime. Like many others, Jim Kukral and Ted Murphy both have exciting new projects in the works… what about you? This is not the time to sit back.. it’s the time to move forward!

What do you see for the future of Web 2.0 and is everyone over reacting too soon… or just calling in the Grim Reaper for Halloween spirit?

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34 Replies to “The Fall of the The Stock Market and Web 2.0!”

  1. Zac is wise beyond his years. I credit his dad with that! Having been in the market through a few of these (1987, the "dot bomb"), as well as running my own online company through the second I can heartily tell you that if you can make it through this you will do well. Just as investing in the market now may seem stupid, the same goes for investing in yourself and your business.

    This may not be the bottom, but it is coming. After the bottom comes the next rise, and if you wait until it starts you may be too late. Take a chance and get going now. Sure, you may see more downside in the near term, but building a smart sustainable business always makes sense, and it is better to be positioned to go forward when things look up than trying to build something and hope you are there before it tops out again.

  2. If there is anytime to try your hand at internet marketing, then now is that time.

    There's really no overhead involved, so why worry? If it doesn't work out for you, then no loss, but if it does, then you'll be miles ahead of everyone that was afraid of the end of the web.

    The internet will never go away and as long as it exists, there will be companies using it for advertising and marketing purposes.

    Even if it did go away, it would only be for a short period of time before it was back and even stronger and bigger than before.

  3. I agree with you Zac, now is far from the time to slow down. It's actually the best time to get started with marketing. While the rest of the world crumbles we should rise to the top and keep on chugging along!

    Although I do watch the market daily I don't personally have much invested in stock and I thank the lucky stars for that every day. But one day I'm sure it will go up again!

  4. It’s cool with me if everyone throws in the towell on web 2.0. Less competition for me. 🙂 I still plan on making a kick-ass web 2.0 website.

  5. a stock that go down does not mean the compagny worth nothing.. right now the market is crazy .. but sooner or later it will come back…. now it is time to look after the compagnies that will make alot of money during the next five years… great opportunities right now .. web 2.0 it is still a great thing.. maybe not as strong as before but still strong

  6. God I wish I had the money to buy now and just sit it out.. Ok maybe not now but give it another 6 months and I would be buying everything I could afford!!

    I can’t believe Microsoft stocks plummeted they have a cash mountain set aside “just in case” anyway.

  7. End of Web 2.0 – Apocalyptic Comments, much?

    There will be an end to Web 2.0, but I don't think it will be this soon. The party has just started, after all.

  8. Its a great time to invest in stocks! I think in reverse psychology. What goes down, must come back up. The Stock Market has been around since 1792. They survived one Crash. They are still around. Focus on what you've got and keep pushing to the top. Quality Post right there. Thanks!

    1. true. i think it's a great time to invest. stocks are selling relatively cheaply. and i'm fairly sure many of these will recover with time.

  9. That's the thing I like about the internet. It will always be stable (in my opinion) and anybody that takes advantage of it is doing the right thing. Glad I started doing this at an early age!

    1. Well, that was the first thought that went in my mind. Combining the user base with something that makes money or something like that.

  10. It's the same in the offline world too, the businesses that persevere to see through this low will be doing better than ever when they come out at the end.

  11. Yet another great post Zac. This is another one of those inspiring posts of yours to push people forward rather than fall back during these economic problems.

    -Mike

  12. Private websites, especially social networks should not be effected too much. If anything, more people are going to be spending more time at home insteaf of going out and spending money, so in order to not get bored they'll be online. Web 2.0 will be greater than ever.

  13. You just have to be able to see the opportunity in everything. In bad times people will be looking to protect what money they have left, get out of debt, buy precious metals, start their own gardens, stock up on survival supplies, go fishing more, buy a lawn mower and get rid of the $120 a month lawn guy, save on gas, etc., etc.

    People will always spend money on something, you just have to figure out how to get into the path where the money is flowing.

  14. Boy, if only there was a online network or something I could join to talk to network and find a new job…or talk about the stock market dropping….or….

    I wouldn't count out Web 2.0 just yet. Do me a favor, everyone unplug your internet connection for a day and see how much work you get accomplished. My job is fairly dependent on the internet and all that it entails. Not much on the social networking side yet, but my LinkedIn network is growing and I don't think any user will want that network to die. I am sure the millions on the social sites feel the same way. Someone will figure out how to break even, then make $.

    It might however be the end for the "middle" guys. Those companies who have already done several rounds of funding and still have holes in their pockets. At some point your company has to grow up and fend for itself. Those would be the ones I think would be first to go.

    On the investing side – what would your stocks be worth today if you had invested in the market back in the early 30's just after its largest drop? If you had individual holdings, then chances are those companies aren't around anymore, but stock of some of those that are still around are probably well in the money. The prices now are basically 2002 prices, so if you were kicking yourself about not getting in back then and missing the run up to the Dow 14,000 you now have a second shot.

  15. Back when the Dot Com Bubble burst, I saw swift growth for the ClubMom affiliate program, which I was managing then.

    Like many have been saying, the CPM and other non-performance advertising dries up, but there is still so much opportunity out there for performance marketers.

    Work hard and optimize and it's all blue skies ahead.

  16. People don't decide to be self-employed because they want to slack off; they choose to be self-employed because they like a challenge. The state of the economy seems to be motivating more online marketers and web 2.0 users to keep their heads above water. Great post, Zac!

  17. I think web 2.0 is just another selling point to sell to clients on logos and web sites. I wouldn't mind saying goodbye to web 2.0 tho.

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