Posts Tagged ‘bubble’

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Investing like it

Investing like it's 1999: Tech bubble 2.0 is here

With alarmists sounding the alarms and naysayers saying, “nay,” it’s certainly looking very similar to the way things were over a decade ago right before the dotcom bubble burst. Did we learn our lesson back then or are we in the process of repeating our mistakes? Few can argue against the concept that we’re in another tech bubble. The only real debate is whether or not the bubble will burst. With Facebook leading the way with valuations far exceeding prospects of revenue and slowdown in growth, it’s the poster child for both high-value investors as well as those warning of a more catastrophic collapse…

Unmatched Revenues: Why we really are in the middle of another online tech bubble

Unmatched Revenues: Why we really are in the middle of another online tech bubble

The numbers are completely off the charts. In case you missed insane valuations in recent months for companies such as Facebook, Twitter, and LinkedIn, the infographic below should bring it into perspective. When did value start getting dictated by users rather than revenue? Something can definitely be said about potential, but are investors really doing the right thing by betting so high on some of these companies. As a general rule, a company is normally worth somewhere between 3-6 times its yearly revenue. That would put Facebook with an estimate 2010 revenue around $2 billion valued at…

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