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Since tech companies use other tech company's products this implies the tech industry is a speculative bubble.
by arberx 4y ago
Since tech companies use other tech company's products this implies the tech industry is a speculative bubble.
- mym1990 4y agoI'm not sure dependency implies a bubble, rather a risk. For companies like Amazon(AWS), there certainly is an element of being too big to fail because AWS and similar cloud operations provide so much of the infrastructure for other applications. The bubble can clearly be seen by the disassociation of valuations from the underlying value, which for many new companies is nothing.
- hot_gril 4y agoIt is partially. There's some basis in reality since it's actually very profitable overall, but the investment goes beyond reality. I'm not saying you shouldn't invest in tech. It's possible this bubble never goes away.
- spaceman_2020 4y agoValuations are definitely in a bubble Most of these unicorns simply can't turn a profit with their current cost structures. And even if they do, the profits will be so small that the valuations will simply not be justifiable.