2 Internet companies thriving years after the bubble bust

Q: Have any dot-coms made good?

A: The Internet bubble was one huge reminder to individual investors about the dangers of stock-market speculation. But it wasn’t a total bust.

Amazon.com (AMZN)stands as the best example of an Internet company turned into a global powerhouse. Shares of the online retailer jumped nearly 3% Tuesday to roughly $700 a share - a new record high - after Sanford C. Bernstein analyst Carlos Kirjner increased his price target on the stock to $1,000. That’s even higher than $804 average 18-month price target by the average analyst, says S&P Global Market Intelligence. But it shows how optimistic investors are on the company, which just posted a profit in the first quarter that topped expectations by 75%. But Amazon isn’t alone in showing the Internet era wasn’t all hot air.

Postage seller Stamps.com (STMP), one of the early Internet darlings, Monday reported an adjusted first-quarter profit of $1.72 a share, topping expectations by 64%. The company’s adjusted profit is up 139% from the same period a year ago, highlighting how its business model is paying off. Rather than focusing on selling stamps to consumers, Stamps.com is focused on large volume shippers. The stock is up more than 20% over the past year as the company continues to show it's more than a dot-com wonder.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.