In his latest Silk Road (not online yet, I got it via email) Piper analyst Safa Rashtchy writes:
“Continued weakness in Internet stocks this year, which set up the perfect background for an exaggerated reaction last week on search pricing, reminds us of a similar pattern that developed in Q2 of 2004. Just like now, many funds were selling Internet stocks then, based on perceived weakness in search….We believe, just like then, that the current perceived concern on weakness in search pricing is entirely misguided.”