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Secondmarket valuations: Facebook: 50 Billions Twitter: 3 Billions Zynga: 5 Billions http://vator.tv/news/2010-11-30-facebook-valued-at-highest-ever-50-bill

Secondmarket valuations: Facebook: 50 Billions Twitter: 3 Billions Zynga: 5 Billions http://vator.tv/news/2010-11-30-facebook-valued-at-highest-ever-50-billion http://vator.tv/news/2010-11-30-facebook-valued-at-highest-e...

klochner 16y ago
Those are the extreme examples, of which there are few, and they're not easily traded by the general public. Bubbles almost without exception (please correct me if you have a counter example) are pushed to extremes by the general public (commonly called "mom and pop investors").
- chailatte 16y ago
  ojbyrne already answered that, you shouldn't put fingers in your ear so much ;) "institutional investors, namely pension funds, university endowments, etc"....I am betting at least one invested in Facebook.
  - klochner 16y ago
    you shouldn't put fingers in your ear so much ;) That's on par with "I'm rubber and you're glue . . . ", it's not a logically grounded argument, so there's really no counter argument. "institutional investors, namely pension funds, university endowments, etc"....I am betting at least one invested in Facebook. Again, you're missing the scale required for a market-wide bubble. We're not going to see federal bailouts just because one or two pension funds lost money on facebook.
  - sbov 16y ago
    The problem with the housing bubble wasn't that pension funds, etc, invested. The problem was everyone invested huge portions of what they had because you will never lose money when investing in housing. There should be no such illusion when investing in startups. Because of this, you would probably have a hard time finding an institutional investor that has as much of their fate tied to how well Facebook is going to do as you did with housing. There is about 14 trillion in mortgage debt out there. 50 billion doesn't even register.
hugh3 16y ago
Sure, but the actual amount of real money which has ever changed hands for facebook stock is tiny compared to the $50 billion valuation. Besides, even $50 billion is only equivalent to a fifty-buck-a-share swing in the price of AAPL, something that seems to happen every couple of months. So the total amount of money floating around in this bubble is tiny; nothing to be concerned about unless it's your money.

klochner 16y ago

Those are the extreme examples, of which there are few, and they're not easily traded by the general public. Bubbles almost without exception (please correct me if you have a counter example) are pushed to extremes by the general public (commonly called "mom and pop investors").

chailatte 16y ago
ojbyrne already answered that, you shouldn't put fingers in your ear so much ;) "institutional investors, namely pension funds, university endowments, etc"....I am betting at least one invested in Facebook.
- klochner 16y ago
  you shouldn't put fingers in your ear so much ;) That's on par with "I'm rubber and you're glue . . . ", it's not a logically grounded argument, so there's really no counter argument. "institutional investors, namely pension funds, university endowments, etc"....I am betting at least one invested in Facebook. Again, you're missing the scale required for a market-wide bubble. We're not going to see federal bailouts just because one or two pension funds lost money on facebook.
- sbov 16y ago
  The problem with the housing bubble wasn't that pension funds, etc, invested. The problem was everyone invested huge portions of what they had because you will never lose money when investing in housing. There should be no such illusion when investing in startups. Because of this, you would probably have a hard time finding an institutional investor that has as much of their fate tied to how well Facebook is going to do as you did with housing. There is about 14 trillion in mortgage debt out there. 50 billion doesn't even register.

hugh3 16y ago

Sure, but the actual amount of real money which has ever changed hands for facebook stock is tiny compared to the $50 billion valuation. Besides, even $50 billion is only equivalent to a fifty-buck-a-share swing in the price of AAPL, something that seems to happen every couple of months. So the total amount of money floating around in this bubble is tiny; nothing to be concerned about unless it's your money.