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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

#41

Post by megaman821 »

ericmay wrote: post #10
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?

I think there's some panic, yea, but the P/E doesn't tell the whole story. Take Facebook or maybe Google (just to pick on, others like Apple have their own headwinds to face) - how does advertising fair in a recession? Maybe the P/Es have retracted to look appealing, but here in about 2 years when ad revenue is down 30% those same P/Es look expensive. Personally I think if you are investing with a longer-term horizon…

What about a recession would cause FB or Google to leave the advertising business, and not have some the largest advertising revenue whenever the recession is over? It is more of a choice can your money be invested somewhere better in the short-term and then hop back on to FB and Google before they get too expensive.

It is probably the same for all large tech companies. I don't see any titans falling in the next few years.

Re: Tech bubbles are bursting all over the place

#42

Post by sroussey »

duckfruit wrote: post #14
Victerius wrote: post #5

And all it took was the Federal Reserve raising the federal funds rate by less than 100 bps after a decade and a half of rock bottom rates. I have nothing more to add. I'm going to go outside and breathe some fresh air.

A rate hike that that was widely telegraphed and has been anticipated for years, to boot!

Don’t fight the Fed.

Re: Tech bubbles are bursting all over the place

#43

Post by happythebob »

qeternity wrote: post #11
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?

> Those are normal values for the stock market (20-25). Presuming your experience in equities markets is within the last decade... Historical average is more like 15 for SPX.

Right but this is MSFT and AAPL. They're not going anywhere. Inflation is.

Re: Tech bubbles are bursting all over the place

#44

Post by epgui »

PartiallyTyped wrote: post #37
deepnotderp wrote: post #19

Earlier quoted context omitted.

That’s because the market calculates a high probability of an Intel implosion

With an engineer on the helm, rehiring big names in the field, opening more fabs, and having access to TSMC's newest node over AMD[1].. it seems unlikely. [1] https://www.extremetech.com/computing/334897-amd-might-have-...

If you know something the market doesn't know, and you're confident that you're right, then put all your eggs in that basket: that's how one beats the market.

(Don't follow this advice, I'm just a dude on the internet, this is not financial advice and my background is biochem + software, not finance)

Re: Tech bubbles are bursting all over the place

#45

Post by samtheprogram »

MAGZine wrote: post #16
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…

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 from becoming insolvent? The fact that this might not be standard due diligence as suggested by your comment is mind boggling to me.

Re: Tech bubbles are bursting all over the place

#47

Post by pc86 »

Gravyness wrote: post #23

Tech? like technology? What does it mean? Because surely companies that apply scientific knowledge for practical purposes aren't 'bursting' all over the place, right? Does it refer to specifically these huge companies quoted on the article?

You know exactly what it means. There is no way that you think tech in this context means "applying scientific knowledge for practical purposes" unless you have - and I truly, deeply mean this with zero disrespect whatsoever - weapons-grade autism.

When did it become the cool thing to pretend to not know anything about the context in which a particular discussion happens? It's maddening, but also completely exhausting.

Re: Tech bubbles are bursting all over the place

#48

Post by dilyevsky »

versale wrote: post #12
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?

Intel’s P/E is 7 right now. So, the other ratios do look inflated.

Blue chips and intel in particular always had low p/e
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