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Tech bubbles are bursting all over the place

economist.com

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Re: Tech bubbles are bursting all over the place

#231

Post by scarface74 »

samtheprogram wrote: post #45
MAGZine wrote: post #16

Earlier quoted context omitted.

the fact that you stopped to ask those questions makes me think that you're at minimum, an above average developer. caring about the business and its fundamentals is important beyond just slinging code.

If you're going to be paid in equity and not asking those questions, unless it's a publicly traded company (where you have these answers ahead of time) or you are getting compensated well above average in cash equivalents, it would be just plain irresponsible to not ask those questions. Even if you are getting paid an extremely good salary, who wants to start working for a company that's potentially months or a year…

It’s statistically irresponsible to think your equity is going to be worth anything in a private company and give up cash compensation.

Re: Tech bubbles are bursting all over the place

#232

Post by rvz »

screye wrote: post #164
freeqaz wrote: post #6

A lot of these companies have very reasonable P/E ratios now. Microsoft is sitting at around 27, Apple 25, and Facebook 15. None of those strike me as "inflated". Those are normal values for the stock market (20-25). Are investors just panicking?

My intuition is that those are 3 of the select few companies that are not in a bubble. I would add Google and Amazon to that list too. They make insane amounts of money and continue growing at a steady pace. Apart from Facebook, they have all shown the capability to expand into other verticals and successfully end up as major player on a consistent basis. This sets a high ceiling on growth despite being country sized…

> Nvidia, Unity, Cloudflare and similar companies with products with tangible value will survive most downturns. Non-ads based companies that extract value on the margin will struggle in this bear market.

Yes. Cloudflare was a very good buy signal 2 days ago. [0] Now it has gone up again. Most likely a short term upwards side, but I wanted to tell everyone about it, but I was downvoted to hell and beaten up for my correct Cloudflare signals. [0]

They should have listened, but instead they held all the way at the top. [1]

[0] https://news.ycombinator.com/item?id=31339476

[1] https://news.ycombinator.com/item?id=29355360

Re: Tech bubbles are bursting all over the place

#233

Post by me_me_mu_mu »

MisterBastahrd wrote: post #8
avgDev wrote: post #2

I work for non-tech generating 100million+ in revenue. Cushy job, fully remote, good pay and full autonomy with flexible hours working as an IC. I recently talked to a startup, similar pay, culture would be a better fit since it was mostly techies and I'm a nerd by nature.....but things just got awkward as soon as I asked about their revenue....they were bleeding money and I was told they were being acquired by a big…

Same thing happened to me. There's a company in Dallas that had a website that basically presented users who were searching for a product type with a list of products along with their ratings. Apparently they were supposed to make money off of affiliate links. The website was buggy and slow, and also... Google does that already. So they pivoted, and now they've aimed their engine at CBD reviews or something. I still…

I wish people would just build solutions to actual problems they have that other people also confirm to have.

Not everyone is a visionary like Steve Jobs or whatever, and that’s okay. Just build something that solves your problem and helps others who also deal with it.

Re: Tech bubbles are bursting all over the place

#234

Post by nkabbara »

bombcar wrote: post #103
nkabbara wrote: post #80

Is this a good time to start buying as everyone is selling/panicking?

It's always a good time to buy if you're doing dollar cost averaging into index funds. Trying to time the market is probably a fools game, much better spent trying to avoid total ruin.

Yup, I DCA regularly, but thinking about whether this is a good opportunity to throw extra into an index fund like VTSAX or maybe solid individual stocks.

Extra would be coming from an account that I keep cash in for unforeseen opportunities.

Re: Tech bubbles are bursting all over the place

#235

Post by me_me_mu_mu »

dgb23 wrote: post #153
legitster wrote: post #75

This has been a long time coming. Back in the day, there was an inherent understanding that a stock price is supposed to reflect "the fundamentals" - present value of the company + future earnings. And of course there was some amount of speculation around future earnings, but for the most part companies at least tried to be profitable. But if you look at the share price of like, Tesla - it's completely insane. There…

I don’t understand finance. But with tech I can often see from a mile if something might happen, I don’t have ideas, but I understand „this solves a problem“ or „this is high quality“ versus „this is made up“ or „someone else will do this better“. In my opinion the issue with the stock market is that it is often finance driven and too drawn away from the actual work that is being done and the actual needs and problem…

It’s mostly based on feelings and perception imo.

Re: Tech bubbles are bursting all over the place

#236

Post by otterley »

scarface74 wrote: post #227
otterley wrote: post #195

Earlier quoted context omitted.

> ISO (Incentive Stock Options) are one of the biggest scams of all time and you’re financially illiterate if you value them more than zero. They are carefully designed by venture capitalists to screw employees Given the number of millionaires and billionaires who can credit ISOs for their current wealth, I think that's too broad a statement. At the end of the day, a well-run company that can eventually go public bec…

Survivorship Bias at its finest. You don’t hear about the other 90%+ who got absolutely nothing.

> Admittedly, many will not

Re: Tech bubbles are bursting all over the place

#237

Post by [deleted] »

thomasahle wrote: post #228
lumost wrote: post #7

Earlier quoted context omitted.

Across every investment class there has been a trend of buyers needing to become more financially irresponsible in order to participate in the market. Need to buy a house? bid 20% more than asking, if you don't - someone else will.. in cash. Need to build a ride-hailing app? prepare to pay people to ride indefinitely. Need to own a growth stock? prepare to pay upwards of 100x multiple on revenue. All around, there ha…

> Need to buy a house? bid 20% more than asking, if you don't - someone else will.. in cash. Who buys a house in cash? You mean literal suitcases of dollar bills? Or do you just mean something like a bank transfer? What other ways are there to buy something?

[deleted]

Re: Tech bubbles are bursting all over the place

#238

Post by noufalibrahim »

thomasahle wrote: post #228
lumost wrote: post #7

Earlier quoted context omitted.

Across every investment class there has been a trend of buyers needing to become more financially irresponsible in order to participate in the market. Need to buy a house? bid 20% more than asking, if you don't - someone else will.. in cash. Need to build a ride-hailing app? prepare to pay people to ride indefinitely. Need to own a growth stock? prepare to pay upwards of 100x multiple on revenue. All around, there ha…

> Need to buy a house? bid 20% more than asking, if you don't - someone else will.. in cash. Who buys a house in cash? You mean literal suitcases of dollar bills? Or do you just mean something like a bank transfer? What other ways are there to buy something?

In cash as opposed to getting the transaction financed.

Re: Tech bubbles are bursting all over the place

#239

Post by searchableguy »

prohobo wrote: post #53
gowld wrote: post #30

Earlier quoted context omitted.

> Meanwhile he had his hands in various bullshit crypto (not hating on crypto, just the projects) defi startups. Your confusion is assuming that "bullshit" means "unprofitable". Plenty of projects turn profit for their owners.

Maybe. In any case, it seemed to be much more about extracting profit through facades rather than funding real products.

> In any case, it seemed to be much more about extracting profit

What do you think purpose of a fund is? To provide returns for their LPs.

You need to pitch to an angel investor who might care about the mission than a business fund.

Re: Tech bubbles are bursting all over the place

#240

Post by afavour »

thomasahle wrote: post #228
lumost wrote: post #7

Earlier quoted context omitted.

Across every investment class there has been a trend of buyers needing to become more financially irresponsible in order to participate in the market. Need to buy a house? bid 20% more than asking, if you don't - someone else will.. in cash. Need to build a ride-hailing app? prepare to pay people to ride indefinitely. Need to own a growth stock? prepare to pay upwards of 100x multiple on revenue. All around, there ha…

> Need to buy a house? bid 20% more than asking, if you don't - someone else will.. in cash. Who buys a house in cash? You mean literal suitcases of dollar bills? Or do you just mean something like a bank transfer? What other ways are there to buy something?

They mean paying in full themselves, not backed by mortgage.
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