It is quite simple really. You seem to be under the mistaken impression that valuations in tech are based in any way on logic. They're not. They're completely h

It is quite simple really. You seem to be under the mistaken impression that valuations in tech are based in any way on logic. They're not. They're completely hype-driven. That's how this year's myspace, which people will have trouble remembering 5 years from now, can get a higher "valuation" than a large semiconductor company with a 30 year track record. Investors and the financial sector are proving time and time again that they're unable to learn from their mistakes, through no "fault" of their own, because apparently it's human nature to just be horribly bad at this. It amazes me that people think investors somehow learned anything from the dot-com bubble, given they've been repeating all of their other major mistakes every odd year or so.