Bambi Francisco, CBS.MarketWatch.com:
Venture capitalists embraced Friendster and lavished it with a $53 million market valuation, when Friendster had negligible revenue but a lot of promise. Now there’s MySpace, a very similar site to Friendster in that MySpace lets people come together and network, learn about each other, find dates and whatever else people do in a networking environment. The difference is that MySpace seems to be the place with all the promise today. MySpace surged to 3.4 million users in October, up from 1 million in June, according to comScore Networks. By comparison, Friendster has fewer than 1 million unique visitors each month since June. This compares with 1.75 million unique visitors in October 2003. MySpace is clearly adding users. And unlike privately held Friendster, MySpace can be invested in through Intermix Media (MIX: news, chart, profile), which operates MySpace and other Web properties.Some investors seemed to have noticed this tiny company already. Shares of Intermix rose nearly 15 percent Monday to $4.60.
