Report predicts that Google, Amazon will remain strong despite shrinking Internet

Posted June 4, 2008 at 09:51 PM by Arnold Zafra

Section: Web, Web Browsers, Websites

A Sanford C. Bernstein analyst predicted that with the ongoing US economic downturn, the Internet will continue to shrink and most of its major players will suffer but at least two of the current major internet players will remain strong. Guess who? Google and Amazon.

The report entitled “U.S. Internet: The End of the Beginning” written by Jeffrey Lindsay predicted that given their current market performances, both Google and Amazon are most likely to sustain their current standing despite the present US economic recession. In fact these two major internet players continue to post 30-40 percent growth while everybody else seems to be suffering financially.

Interestingly the report has confirmed current happenings in the web industry. For one, it claimed that Yahoo will be eventually sold to Microsoft, while IAC will push through with its plan of splitting up its conglomerate. The report also noted that eBay and Amazon may soon be forced to impose sales taxes on their transactions.

The report also suggest that Yahoo may still recuperate from its slumping performance, possibly by turning over some of its search advertising to Google, or if Microsoft finally takes over the company.

Read [Reuters]