A new tech bubble? - Aussie Stock Forums

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  1. #1

    Default A new tech bubble?

    What do you guys think of a potential tech bubble 2.0?. LinkedIn had their IPO recently and doubled in price in their first day and were valued at $9billion. Today, news is going around that Facebook will list in excess of $100billion next year. They currently make around $4billion from advertising...

    Just wanted to hear some thoughts..

  2. #2

    Default Re: A new tech bubble?

    I remember reading some newspaper article that said LinkedIn was deliberately under-valued so that 'friends' could buy them at the under-valued price to make a quick profit. Hence it should be no surprise that it went up after listing.

  3. #3

    Default Re: A new tech bubble?

    Given the amount of time so many people spend on Facebook, I would say even $100B listing market cap would be reasonable. LinkedIn, on the otherhand, I have seen nowhere and heard nothing of, so I would assume the furor around it is unreasonable. I heard Jim Chanos say lately that he would be short LinkedIn because it is obviously unreasonably priced, but there are no shares available to borrow so he's not interested.

    But as for a 'tech bubble', no, that's media sensationalism and hyperbole. The 'dot-com' tech bubble that blew up in 2000 was marked by a massive overpricing of tech related stocks on a massive scale. This is a few companies, which may be being overpriced in their IPOs.

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