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Tech is a big part of the US stock market (significantly bigger than it was before the financial crisis began). The question is: would the unicorn bubble burst
by sbardle 11y ago
Tech is a big part of the US stock market (significantly bigger than it was before the financial crisis began).
The question is: would the unicorn bubble bursting then contribute to a loss in faith in tech in general by investors, a NASDAQ collapse and a haircut for the likes of Apple and FB?
We could well be on our way to QE to infinity and beyond.
House prices in parts of the UK are 17 times salary now (against a historic average of 4 or 5), which all comes down to central bank policies over the last 20 years.
The new (ab)normal might be here to stay, although I'd take a punt on alternative currencies in the meantime.
- nostrademons 11y agoAll unicorns together are worth less than Apple. https://www.cbinsights.com/blog/unicorn-companies-worth-less-than-apple/ https://www.cbinsights.com/blog/unicorn-companies-worth-less... [August 2015] (It's also less than Alphabet, given stock price movements since August. Take Uber and Xiaomi out of the unicorn list and the aggregate value of all unicorns combined is a little less than Microsoft.) The total value of unicorns, including Uber and Xiaomi, is roughly 10% of the NASDAQ 100. [per same link] The total value of the NASDAQ 100 is about 1/4 that of the S&P 500: http://marketcapitalizations.com/historical-data/total-market-cap-sp-500/ http://marketcapitalizations.com/historical-data/total-marke... Multiply them out and all unicorns together are worth about 2-3% of the S&P 500, or less than 1/4 of the decline since the beginning of the year. That's the typical fluctuation in value on a fairly active trading day.
- gaius 11y agoThese unicorns are not really tech companies tho'. What tech do they sell? They are ad companies or regulatory arbitrage plays, with an app and a website, that's all.
- icebraining 11y agoDoes it matter? They are generally considered tech companies by the public markets.
- rhizome 11y agoIt's the app and the website that make them tech companies.