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Are You in a Bubble?

diegobasch.com

1–10 of 20 posts

Re: Are You in a Bubble?

#3
It does in some ways remind me of the first bubble and I'd like to think that we're all a lot smarter now. I don't really see a massive crash happening like before. But anytime there are huge businesses which are not actually making the revenue to merit their stock valuation - there is potential of trouble.

Re: Are You in a Bubble?

#4
The price of the biggest new tech company of all, Facebook, has done nothing but go down since its IPO.

The public has said it's overvalued at $100 billion.

That indicates to me that we're not in a bubble.

Re: Are You in a Bubble?

#5
On the other hand, the Facebook bubble could pop any day. Most of the world would barely notice, and LinkedIn would still get business from other growing industries. Disclosure: I own LNKD shares.

Of course he's a believer in LinkedIn and owns shares. His company was acquired by them. I'd like to know if he actually purchased more shares than what he was given with the acquisition.

Re: Are You in a Bubble?

#6

On the other hand, the Facebook bubble could pop any day. Most of the world would barely notice, and LinkedIn would still get business from other growing industries. Disclosure: I own LNKD shares. Of course he's a believer in LinkedIn and owns shares. His company was acquired by them. I'd like to know if he actually purchased more shares than what he was given with the acquisition.

If he can sell the shares, it makes no difference. They are public and liquid, good as cash.

Re: Are You in a Bubble?

#7
There's a lot of smoke being blown into this "bubble".

http://www.youtube.com/watch?v=0I4VKj4d0WI

Personally, I can't wait for the pendulum to swing. People seem to have forgotten that it's far easier to launch a company when everyone else is panicking and running for safety. You're competing with fewer players, it's easier to find talent and there's more of a focus on starting actual businesses that generate sustained, predictable revenue.

Sounds great to me.

Re: Are You in a Bubble?

#8
post #4

The price of the biggest new tech company of all, Facebook, has done nothing but go down since its IPO. The public has said it's overvalued at $100 billion. That indicates to me that we're not in a bubble.

It could be that venture capital is in a bubble, but that the general market is not.

Re: Are You in a Bubble?

#9
I bet a lot of VC and angel investors right now are looking at those FB quotes and starting to get a knot in their stomach. The jig is up, the Social Network Bubble that VC's have been hyping and pumping non-stop for the past couple years is over. I bet we'll see a return to interest in companies that have actual revenue, actual customers, and actual businesses.
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