Tech Bubble

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andyfuller
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Joined: Wed Mar 25, 2009 12:23 pm

I know several market commentators are arguing that stocks aren't over priced but all these recent Tech ipo's are just insane.

I will be the first to admit I called it wrong on Facebook - think I will have a read back through that thread.

But I am just reading that Snap Chat is in talks with Alibaba putting Snapchat at a $10bln valuation.

I am sure we will look back in a decade at the huge amounts of money that were wasted on the over valuing of these tech firms.

I get the argument a lot of advertising is moving over to online but these valuations just baffle me.
xitian
Posts: 457
Joined: Fri Jul 08, 2011 2:08 pm

So out of interest, Andy, what are you working on these days? Are you still trying to break into the financial markets, perhaps trading equities but not on a day basis?

I presume you're still somehow working for yourself though if you're popping in and out of the forums and trading random races!
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Euler
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Market selling off a fair bit recently.
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Euler
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Is Silicon Valley in Another Bubble . . . and What Could Burst It?

http://www.vanityfair.com/news/2015/08/ ... her-bubble
andyfuller
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Cheers for that link Peter - I will have a read of it when I get chance over the weekend. GoPro is one of these companies that has taken a hiding. Reached almost $100 shortly after they IPO'd now $37.

Twitter is another great example $70 shortly after IPO now $28.
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Archangel
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Many tech companies have been on multi year bull runs. Its hardly surprising to see some price normalisation. What surprises me more is people buying at all time highs and thinking that is a smart trade
I dont think that the market is going to collapse, i do expect a more bearish period from now on. Selling into strength is a way to go
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Euler
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andyfuller
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There are some crazy valuations there. Not just the one's that failed but the likes of Snapchat and Whatsapp.

Some people lost and made a lot of money on those deals!
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Euler
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LinkedIn sinkin': $10bn gone in one day as shares plummet 40%

http://www.theguardian.com/technology/2 ... -investors

Inevitable that those with such lofty valuations return to earth at some point. Well, most.
vankancisco
Posts: 75
Joined: Mon Dec 14, 2015 8:54 pm

Good stuff, it's always interesting to think about how these types of companies might operate strategically with regards to their future prospects. Absolutely crazy to see how the likes of snapchat and whatsapp have evolved. I wonder what the next thing around the corner is.
PeterLe
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Joined: Wed Apr 15, 2009 3:19 pm

I was involved with a dot com in 2000...the first day of trading saw its valuation go up nearly 250m! They only had one office and a relative small setup! At the time I thought it was crazy and didnt make sense..still doesnt
andyfuller
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It seems a lot of the valuations are based upon the companies being bought out by the likes of Google, Facebook or Microsoft.

GoPro being a case in point!
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Euler
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I think you have a trading strategy there Andy!

Microsoft have now bought Linked in for $26bn. Interesting comments on the reasons: -

http://www.nytimes.com/2016/06/14/busin ... .html?_r=2

I actually owned some Linkedin as I think it's a game changer and recruitment companies are toast unless they radically change. I have a low opinion of most agencies I've dealt with but it's easy to find good people on Linkedin.
andyfuller
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Joined: Wed Mar 25, 2009 12:23 pm

I'll be honest I didn't see Linkedin being a potential target. I don't particularly 'get' the company and don't see it as such a game changer as you do Peter. It seems I am missing something, but I think if I was a Microsoft shareholder I wouldn't be hugely impressed with the deal especially with it being all cash. I don't think it is another Nokia for them though but I don't see it adding the value they think it will.

Another company I just don't get the current valuation of is Snapchat - I know I am not the target audience for it but it really does seem overvalued to me.

Just get a rumour going that parents are all over it and it will soon be departed by the 'youth'.
charcoline
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Joined: Thu Nov 03, 2016 2:06 am

They're still bubble
I'll be honest I didn't see Linkedin being a potential target. I don't particularly 'get' the company and don't see it as such a game changer as you do Peter. It seems I am missing something, but I think if I was a Microsoft shareholder I wouldn't be hugely impressed with the deal especially with it being all cash. I don't think it is another Nokia for them though but I don't see it adding the value they think it will.
Yep, i'm not happy with the fact that Linkedin was bought by Microsoft. See what Microsoft did with Nokia (my favorite brand). they ruined Nokia. However luckily, Facebook didn't buy Linkedin and turn it into another mess like what they turned Instagram into a chaotic market.
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