4 ms·
From the Investopedia: "In the year 1999, there were 457 IPOs, most of which were internet and technology related. Of those 457 IPOs, 117 doubled in price on th
by Homunculiheaded 13y ago
From the Investopedia:
"In the year 1999, there were 457 IPOs, most of which were internet and technology related. Of those 457 IPOs, 117 doubled in price on the first day of trading."[0]
We're not seeing this type of investor behavior at all right now (please correct me if I'm wrong). I personally am not really sure that FB and Twitter will ever find a way to make huge profits and become sustainable large businesses but looking at the market it's clear that investors share this uncertainty.
And since anecdote is so popular when discussing bubbles, I still don't see "normal" people talking about how they're going to "make it rich!". I had people in 2007 telling me I was missing huge opportunities to get rich in not purchasing a home, house flipping shows were all over tv. In the late 90s I knew HS students that were trading stocks on the school library's computers during lunch.
Don't get me wrong, especially when everyone I know in the non-tech sector is still struggling, I have anxieties that the party won't last. However looking around I see nowhere near the insanity I remember in 1999 and 2007.
[0.]http://www.investopedia.com/features/crashes/crashes8.asp http://www.investopedia.com/features/crashes/crashes8.asp
- grey-area 13y agoI personally am not really sure that FB and Twitter will ever find a way to make huge profits and become sustainable large businesses but looking at the market it's clear that investors share this uncertainty. That's not at all clear to me, could you share your reasoning? There are many large SV companies with very high valuations and negative or very low profits in comparison. Companies like Twitter and FB look to me to have a lot of future profit baked into their current valuation - around 100 years worth in the case of FB, and infinite years in the case of Twitter or many other tech stars like snapchat - that's not very realistic and is pretty frothy. Ordinary people are taking a leap of faith and investing in these companies without solid profits to back it up. I'm not persuaded we're in a very rational market right now, given the doldrums the US economy is experiencing, which is a sharp contrast to the new stock market highs we have recently seen.
- deleted 13y ago[deleted]