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Thread: Another Tech Bubble ?

  1. #1
    Banned Eric Stoner's Avatar
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    Default Another Tech Bubble ?

    Taking a break from my usual curmudgeonly critiques of Obama et. al. here are a few questions of genuine and practical value. I have no idea what the answers are.

    Are we seeing another "tech bubble" like the one from 1999-2000 ? I honestly hadn't even thought about it until the issue was raised yesterday after the stock price of LinkedIn shot up from $45 to well about $125 a share before settling just under $100. That price represents 50 times forward earnings making it way overpriced. For now.

    Secondly LinkedIn is currently little more than a resume posting site.

    So I throw it out there to my fellow investors and stock pickers : Is this another Amazon, E-Bay or Google ? Or is it another Pets.com ?
    Is this a replay of the Perot Systems IPO ?

    Are other tech stocks overpriced ? Is there a "bubble" ? Larry Summers says there is. Will it burst ? When ?

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    Default Re: Another Tech Bubble ?

    the author I quoted in the 1999 redux thread is of the opinion that LinkedIn 's IPO and many other stocks in recent play are the result of 'hot money' trying to find high speculative rate of return. However, the 'gold foil hat' crowd would probably tell you that, unlike 1999, today's apparent 'investor fever' has little loyalty to 'tech' stocks or precious metals or any other sector du jour for their own sake.

    for some additional perspective ...

    (snip)Although Facebook competes with LinkedIn (NYSE:LNKD), there must’ve been cheers in the hearts of The Social Network’s employees today. If LinkedIn is able to make a market near $100 a share, LinkedIn is roughly worth $9.45 billion. So what does that make Facebook worth?

    Probably ~$100 billion, or twice as much as what Goldman Sachs (NYSE:GS) claimed merely a few months ago. To arrive at that figure, we look at today’s closing market value of $8.91 billion for LinkedIn which equals 24 times projected 2011 revenue, then apply that multiple to Facebook’s projected 2011 revenue.

    That means Mark Zuckerberg has already built a more valuable business than Ray Kroc’s McDonald’s (NYSE:MCD) which has a market cap of only $85.6 billion. It also means Facebook has already created a more valuable business than Anheuser-Busch InBev NV (NYSE:BUD) — a company that has been nurturing college kids much longer than social media.(snip)

    from


    ... so yes in terms of stock valuation levels insanity prevails ... for the moment !

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    Default Re: Another Tech Bubble ?

    and you will definitely want to check out ... thanks to Bespoke Investment Group





    If you believe these 'pros' you might want to take a dice roll by buying QID

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    Default Re: Another Tech Bubble ?

    I'd say that we are about to go into one.

    Via one of my customers I know that one of the big social media companies is about to get a really huge offer that I suspect they will accept, which could really push up their stock values even more. Hint, someone on this thread already mentioned them. Social media has become a huge driving force for business to create authentic relationships with customers & resolve problems from the source.

    Also, the cloud computing is going to be HUGE! I've been searching for a new computer & everything is now either really big/heavy laptops or the really tiny netbooks with no CD drive & not nearly as much memory. People travel, but that doesn't mean they are willing to give up access to their software & applications. I suspect the cloud computer will explode once all the software companies like Adobe & Microsoft begin offering their premium/full version software via cloud rather than the traditional box/cd version.

    The beginning of the "beta" versions by Adobe in 2008
    http://websphere.sys-con.com/node/529263

    Full fledged versions from Adobe available to "rent" in 2011
    http://www.allgeek.tv/2011/04/12/ado...ent-photoshop/


    The downfall to all of this of course is that if your internet connection is bad, you probably won't be able to access anything.

    With that said, you better believe I plan to invest in this!
    Last edited by Kylea2; 05-22-2011 at 08:14 PM.
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