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For what it's worth, in financial circles it is also known as "this time it's different". Now I don't have detailed statistics with me to do a comparison. But,

For what it's worth, in financial circles it is also known as "this time it's different". Now I don't have detailed statistics with me to do a comparison. But, when you have stocks like SNAP with no revenue getting away with selling non-voting raises 3.5 billion at 20 billion market cap, there is something wrong. It's not the strongest names which need to drag down the market, it's the weakest ones. Then you have Softbank raising tons of money to invest in tech: https://www.recode.net/2017/10/19/16506218/softbank-new-investment-vision-fund-masayoshi-son https://www.recode.net/2017/10/19/16506218/softbank-new-inve... Though I agree this time the bubble might not be the tech IPO rather the cheap capital around the world. That doesn't mean tech stocks will be insulated. Tech stocks might see a large hit, something comparable to the 2000 bust days.

nl 9y ago
You realise that anti-SNAP thing was literally the same argument people used on FB when they floated, right?
- thisisit 9y ago
  Facebook had two classes - A with 1 vote and B with 10 votes. In IPO they offered class A. Snap has A, B and C. They offered A which has zero voting rights. Facebook tried to get another structure in place this year but dropped it. So, not literally the same argument.
  - nl 9y ago
    True, but the financial side is pretty much the same. Additionally, the preferred holdings in Facebook's case make the difference between the 1 vote class A and a hypothetical zero vote class somewhat moot (at the moment anyway).
tim333 9y ago
I'm not sure "this time it's different" really applies to the stock market at the moment. The valuations seem a bit steep but not that out of line with history given the low interest rates. There have always been companies like Snap where it's unclear if they'll make it or not. Now cryptocurrencies do seem to fit the "this time it's different" model.
- dreit1 9y ago
  Cryptocurrencies are different because they allow the average investor to get involved in early stage high growth potential asset, which was traditionally limited only to VC's and other accredited investors. This is why they are much likely to move in bursts as opposed to late stage stocks. Each burst can be seen as an equivalent as achieving a new series of financing in VC

nl 9y ago

You realise that anti-SNAP thing was literally the same argument people used on FB when they floated, right?

thisisit 9y ago
Facebook had two classes - A with 1 vote and B with 10 votes. In IPO they offered class A. Snap has A, B and C. They offered A which has zero voting rights. Facebook tried to get another structure in place this year but dropped it. So, not literally the same argument.
- nl 9y ago
  True, but the financial side is pretty much the same. Additionally, the preferred holdings in Facebook's case make the difference between the 1 vote class A and a hypothetical zero vote class somewhat moot (at the moment anyway).

tim333 9y ago

I'm not sure "this time it's different" really applies to the stock market at the moment. The valuations seem a bit steep but not that out of line with history given the low interest rates. There have always been companies like Snap where it's unclear if they'll make it or not. Now cryptocurrencies do seem to fit the "this time it's different" model.

dreit1 9y ago
Cryptocurrencies are different because they allow the average investor to get involved in early stage high growth potential asset, which was traditionally limited only to VC's and other accredited investors. This is why they are much likely to move in bursts as opposed to late stage stocks. Each burst can be seen as an equivalent as achieving a new series of financing in VC