... that were difficult for analysts to reconcile to the companies' fundamentals shown in the financial statements. Hence it is relevant to question the contribution of financial statements made to the pricing of Internet stocks. While financial statements were never designed to monopolise all the relevant information used in pricing stocks and securities, they are expected to convey relevant and substantial information to the public. It has however been argued that for fast-changing, technology-based industries, non-financial information is more relevant than accounting or financial information. The difficulties in valuing internet stocks lie on the fact that the industry and the firms in it are young and that there is very little historical financial information available to which it could be used to forecast future profitability; and the industry is evolving at a very rapid and unpredictable pace that whatever historical data/information which existed would likely be less than useful for valuing these ...

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