Social Networks and Online Video

Unless you are actively part of that subculture I would advise to stay away. You need to be very entrenched in social networks to hear the rumor mill of buying interest before everyone else does and inflates the stock.

For example, a month or so ago it was rumored that the creator of Digg.com was considering selling - instantly the stock rose. If you had some connections that rumor news was around a few days before.

Google has YouTube, so the boat was missed on that one. The rumors are already flying about Digg - low ROI. Stay away from Yahoo and Facebook as they may tank in time before any buy out.

Now is a dangerous time to invest in websites - I'm not going to say there will be another bust, but some sites are definitely over priced right now. Not saying Google isn't a deserving cash cow but I feel their current price is even a little inflated.