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01/02/2009

2008 Internet Stocks: Year In Review Plus 10 Best and 10 Worst Stocks

Internet stocks outperformed the market in 2008, albeit in the wrong direction.  Overall, the internet sector declined -52.2% during 2008 vs. the NASDAQ's -40.5% decline and the S&P 500's -38.5% decline.

Out of 128 year-end stocks in the sector, the average stock declined by -52.3% and the median stock declined by -56.2% indicating that declines were pretty well balanced across small and large cap Internet stocks.

It's interesting to note that Google, which accounts for a whopping 41% of the sector's capitalization was down 56%, slightly more than average, which means that Google actually underperformed the Internet sector as a whole.

Believe it or not, but only 4 Internet stocks or just 3% of the total managed to post a gain in 2008.  That means that 60% of the Top 10 performing Internet stocks of 2008 actually lost money.  See for yourself:


2008 Top 10 Best Performing Internet Stocks

Internet Winners

About the only notable trend in the Top 10 was the strength of Chinese Internet stocks which is kind of surprising given that the main Chinese market was down 65% for the year.  Some of this may have to do with the fact that Chinese Internet firms already traded at very low relatively PE's prior to the crash but in general it's a bit confusing.

In terms of losers, as with our review of Software stocks, the competition to make the list of Top 10 losers was fierce and required an even bigger decline to make the list.


2008 Top 10 Worst Performing Internet Stocks

Internet Losers


No real trends here either except to point out the that top two companies changed their names during the year as part of a rebranding/restructuring exercise.  Kowabunga indeed!

January 2, 2009 in Internet, Stocks | Permalink

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