Why? Because stock valuations are no longer based on current earnings but rather potential earnings. (How much money did AMZN lose last quarter?) Why does VDAT have good potential? Because very soon high-speed internet connections will be common and nobody is interested in seeing still pictures when they can see video. If you think that the internet, which you are currently using I might add, will look the same in 5 years you are seriously mistaken. As far as 4th tier Net plays are concerned? Numerous businesses have started out in new industries and were touted for their unlimited potential only to end up getting over run by new companies using the technology of the day to it's highest advantage. A good example would be the transportation stocks of the early part of this century. They were companies that established clear easy to use roads between cities before any roads existed and then charged people for their use. Suddenly people were getting places 3 times faster and the economy took a sharp turn upward. But, alas, these first tier companies did not take full advantage of their resources and were later bought out for a song by the much more powerful railroad companies (second tier transports if you will). Anyone who owned stock in these first tier companies ended up losing just about everything they'd invested. Do you see an analogy here? Transports -transportation of information. First tier companies -Yahoo, Amazon, etc. I know many net players will not like this analogy here but I fear it may be an apt one. Anyway you can see that I view VDAT as the railroad. I think they will "build on top of the internet" much like the railroads built atop the roads of their first tier competition.