Digital Economies
Posted by Jamie Hutson | Filed under Life, revenue models
A few posts ago I wrote about the online economy and how, in my opinion, it is helping to keep our struggling economy afloat. This morning on Squawk Box, two of the economists were analyzing the durable goods reports from April and they kept referring to ex-autos, ex-transportation, ex-this and that. While I fully understand what they are referring to, I’d love it if they could report, ex-e-commerce or ex-iTunes. And while I realize that the durable goods report probably shouldn’t include virtual hugs sent through facebook, it made me realize how (with the exception of Google) the online success seems to be an afterthought or an also-ran.
Its been two years since ecommerce accounted for more that $100bb in revenue, and in Q1 ‘08 Retail Spending online topped $32.5bb according to comScore. I think its time that the financial world started talking about the online economy the other 10 months of the year (they won’t shut up about it in November and December). I also think there is alot of learning to be done by the major financial institutions regarding the value and potential value of online retail, in a more serious manner. Sure, Amazon stock is up over 200% since May 06 “but thats just another hyper inflated internet stock” (I’ll trade you one Amazon share from June 06 for 10,000 shares of Bear Sterns…)
Just a little rant about the complete lack of focus the financial industry has to whats actually happening. CDOs, LBOs, Off Balance Sheet, Mortgage Backed Securities… How bout we go back to what made this country great, making stuff, selling stuff and buying stuff (as opposed to buying stuff that other people sold and eliminating the process of actually making anything). What was it Gordon Gecko said? - “It’s a zero sum game.” All that fake money is useless with out something to actual back it, wait a minute, isn’t that why they say Amazon isn’t worth anything…
May 29th, 2008 at 10:43 am
Hell ya Jimmy.. 1Q GDP growth in at 0.9%? Recession? What recession? Back to back quarters of negative growth? Hasn’t happened yet… DON’T DRIVE, BUY ONLINE