This was beyond most people's wildest dreams. They keep running on all cylinders and I don't see anything in the way to stop it.

Up until a week ago, companies had been running on expectations over fourth-quarter earnings. I don't think people are expecting anything bad. But more recently, it got to the point where these stocks ran up so much that a little profit taking ensued.

Between Merced and analysts dropping their estimates, the FTC [lawsuit] is not as big a deal as the others. When the announcement is made, the stock probably won't go down very much.

They're trying to diversify their bets. They don't know who will be the leader in this space, and they want to have a presence with whoever has the potential to be the leader.

It's really tough to say how that will pan out. [Set-top devices] could be one of the major avenues of getting on the Internet. For the masses who don't deal with computers on a regular basis, they'll feel more comfortable with using a TV for access.

Right now we have 45-percent PC penetration in the U.S.. It will be years before we see that in China. There's no need for the Internet right now. They have plenty of other problems.