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onryo · 21 July 2011, 10:16 AM

You've got to wonder with all these IPOs (LinkedIn, Pandora, now Zillow, and more on the way) if we're not entering tech bubble 2.0. The earnings are infinitesimally small or non-existent for many of these companies with no clear plan for sustained profitability. How long will investors ignore their fundamentals?

snowbird · 21 July 2011, 10:52 AM

Good question. From what I understand LinkedIn at least is profitable as of now, though it had several years of losses in the beginning. Plus it's a lot harder to go public than it was in the late 90s/early 00s tech bubble.

House prices in Silicon Valley, obviously correlated with IPOs, may seem like a bubble too, but right now the supply of homes on the market is highly restricted so the prices are rational in that sense. Even rental housing is being bid up from lack of supply.

Groupon does seem a little shaky to me though with a business model that seems pretty easy to imitate and no propietary technology. If it were me I'd have taken that big bucket of cash Google offered.

fusionstorm · 21 July 2011, 01:50 PM

It's a bubble, but nothing like the dot com boom/bust of late 90s/early 2000. I posted a on another forum about this same subject, and basically I summed it up as the past bubble was like the Hindenberg, and this bubble is more like a monster truck tire.

toph · 21 July 2011, 01:51 PM

until they all get found out

21 July 2011, 10:16 AM	#1
onryo Member Join Date: Dec 2010 Location: Seattle Watch: GMT-Master II Posts: 410	Tech bubble forming? You've got to wonder with all these IPOs (LinkedIn, Pandora, now Zillow, and more on the way) if we're not entering tech bubble 2.0. The earnings are infinitesimally small or non-existent for many of these companies with no clear plan for sustained profitability. How long will investors ignore their fundamentals?

21 July 2011, 01:50 PM	#3
fusionstorm "TRF" Member Join Date: May 2009 Location: Piedmont, CA Watch: various vintage Posts: 2,272	It's a bubble, but nothing like the dot com boom/bust of late 90s/early 2000. I posted a on another forum about this same subject, and basically I summed it up as the past bubble was like the Hindenberg, and this bubble is more like a monster truck tire. __________________ 1680 MK II 2.2M (my daily); 1655 MK IV 8.1M (my 1st vintage); 16660 x 4 - 8.0M spider & matte 7.4M, 8.0M, 8.0M; 16610LV F MK I/MK I; 116528 Z; 14060 M COSC; Tudor 75090 Gone.....never forgotten: 14000 F, 14060 V COSC, PAM 048, 16623 F, 1680 MK V 3.1M, 16800 matte 8.3M & 1655 MK IV 7.4M

21 July 2011, 01:51 PM	#4
toph "TRF" Member Join Date: Apr 2008 Real Name: ChrisTOPHer Location: Sydney Watch: Rolex, Brellum, Posts: 12,601	until they all get found out __________________ "Where no counsel is the people fall, but in the multitude of counselors there is safety." Member No.# 11795

21 July 2011, 10:52 AM	#2
snowbird "TRF" Member Join Date: Sep 2009 Location: USA Watch: Sea-Dweller 16600 Posts: 2,157	Good question. From what I understand LinkedIn at least is profitable as of now, though it had several years of losses in the beginning. Plus it's a lot harder to go public than it was in the late 90s/early 00s tech bubble. House prices in Silicon Valley, obviously correlated with IPOs, may seem like a bubble too, but right now the supply of homes on the market is highly restricted so the prices are rational in that sense. Even rental housing is being bid up from lack of supply. Groupon does seem a little shaky to me though with a business model that seems pretty easy to imitate and no propietary technology. If it were me I'd have taken that big bucket of cash Google offered.

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