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Based solely on stock value. Which, I guess if you had to take a measurement based on something it may as well be that. Assuming we're not in a bubble. The las
by comrade1 11y ago
Based solely on stock value. Which, I guess if you had to take a measurement based on something it may as well be that. Assuming we're not in a bubble.
The last two crashes the stock value dropped 50%. Does that mean Silicon Valley productivity drops 50%?
- adventured 11y agoNot based solely on stock value. Just those 99 companies, referenced in the article, account for 6% of all US corporate earnings. Intel + Apple + Google + Cisco + Oracle = ~$95 billion in net income.
- spacehome 11y ago> The last two crashes the stock value dropped 50%. Does that mean Silicon Valley productivity drops 50%? Um. No?
- garry 11y agoThis is the kind of armchair comment that misunderstands how Silicon Valley works. You're right that stock value is disconnected from actual value (or productivity), but it's not right to connote there is no value at all. The first crash was lack of startup fundamentals. By all means it was a Valley-induced bubble. But the second was an external liquidity crisis uninfluenced by the fundamentals of startups. In the aftermath of both crashes, billions in value were created by small teams of software engineers in Silicon Valley, and that's real earnings/cash flow.