Mixi Drops 28% Since IPOposted by MR WAVETHEORY at 10/10/2006 12:45:00 AM
Mixi is the social network/MySpace of Japan. Is this the start of the Web 2.0 Bubble or the beginning of the end?
Mixi, which went public on Sept. 15 at an astounding price of 2.95 million yen a share -- more than 200 times its forecast earnings per share for the fiscal year -- has fallen 28% since then. On Friday, Mixi dropped 11%, or 270,000 yen, to 2,130,000 yen. Also hurting Internet businesses is a sharp decline in online advertising, as one group of the biggest spenders, consumer lending companies, has curbed its spending. Consumer lenders, which charge high interest rates, have cut their advertising by about 30% since April, according to J.P. Morgan's Ms. Katsuma, due to jitters about a feared crackdown by authorities.Time to sell?