4 ms·

The interesting thing is it's all one industry. Has that ever happened before? Oil was pretty dominant for a while, but nothing like this.

namdnay 6y ago
I don't think it's fair to say it's one industry. Apart from the fact that they heavily use the internet, can you really say that Amazon and Facebook are the same industry? One is a social network, the other is a retailing and infrastructure shop
- Cthulhu_ 6y ago
  Apple is also primarily a hardware company, Microsoft has it as part of its business (mostly successful in gaming).
taneq 6y ago
There was a brief period where it was tulips...
throw0101a 6y ago
It's happened with basically all industries: oil, canal building, rail roads, cars. Even bicycles: > Technological revolutions are often accompanied by substantial stock price reversals, but previous literature has produced competing explanations for why this is the case. This paper brings new evidence to this debate using data from the innovation-driven British Bicycle Mania of 1895-1900, in which cycle share prices rose by over 200 per cent before collapsing by more than 75 per cent. These price patterns are not fully explained by fundamentals or by changes in the nature of risk associated with cycle shares. Instead, the evidence from the Bicycle Mania supports the hypothesis of Perez (2009), who argues that new technology, high short-term profits, and loose monetary conditions increase the level of speculative investment, ‘decoupling’ share prices from fundamentals. * https://www.econstor.eu/bitstream/10419/148345/1/87292534X.pdf https://www.econstor.eu/bitstream/10419/148345/1/87292534X.p... Recent video by Ben Felix of PWL Capital on the topic, "Investing in Technological Revolutions": > Exciting new technologies, and the companies that create them, seem like obvious investment opportunities. Why wouldn’t you want to invest in the companies leading a new world-changing technological paradigm? * https://www.youtube.com/watch?v=UZnVt_CvL3k https://www.youtube.com/watch?v=UZnVt_CvL3k

namdnay 6y ago

I don't think it's fair to say it's one industry. Apart from the fact that they heavily use the internet, can you really say that Amazon and Facebook are the same industry? One is a social network, the other is a retailing and infrastructure shop

Cthulhu_ 6y ago
Apple is also primarily a hardware company, Microsoft has it as part of its business (mostly successful in gaming).

taneq 6y ago

There was a brief period where it was tulips...

throw0101a 6y ago

It's happened with basically all industries: oil, canal building, rail roads, cars. Even bicycles: > Technological revolutions are often accompanied by substantial stock price reversals, but previous literature has produced competing explanations for why this is the case. This paper brings new evidence to this debate using data from the innovation-driven British Bicycle Mania of 1895-1900, in which cycle share prices rose by over 200 per cent before collapsing by more than 75 per cent. These price patterns are not fully explained by fundamentals or by changes in the nature of risk associated with cycle shares. Instead, the evidence from the Bicycle Mania supports the hypothesis of Perez (2009), who argues that new technology, high short-term profits, and loose monetary conditions increase the level of speculative investment, ‘decoupling’ share prices from fundamentals. * https://www.econstor.eu/bitstream/10419/148345/1/87292534X.pdf https://www.econstor.eu/bitstream/10419/148345/1/87292534X.p... Recent video by Ben Felix of PWL Capital on the topic, "Investing in Technological Revolutions": > Exciting new technologies, and the companies that create them, seem like obvious investment opportunities. Why wouldn’t you want to invest in the companies leading a new world-changing technological paradigm? * https://www.youtube.com/watch?v=UZnVt_CvL3k https://www.youtube.com/watch?v=UZnVt_CvL3k