«If Uber or any other unicorn gets the public markets to agree that yeah, it's worth $ 50 billion, that could avoid» bursting
the tech valuation bubble.
Not exact matches
Billion - dollar
valuations and mega-rounds are just a few of the signs that a
tech bubble may be forming.
Achieving that unworldly
valuation in such a short time has Butterfield fielding lots of questions lately about
tech bubbles and whether these sudden fortunes are built on solid foundations or merely the giddiness of a moment.
He has noticed that there is a
bubble, but says it's mainly confined to
valuations of
tech unicorns.
The investor points to Facebook as an example of how
tech company
valuations can skyrocket postvaluation — and makes the case that if anyone is in a
bubble, it's the traditional incumbent companies, ripe for disruption.
Overall, it's been a tough year for
tech startups, with investors slashing
valuations, VCs yelling «
bubble,» and quite a few complete shut - downs.
Let's look at large
valuations over the last 30 years; the
tech job
bubble with crazy bonuses, the
tech startup
valuation bubble, the housing
bubble.
The
valuation of many
tech companies may appear high, but forward P / E's in the 20's generally are not in
bubble territory.
Rapid share price growth and high
valuations based on standard metrics, such as price / earnings ratio or price / sales, characterize a
tech bubble.
This has some observers asking if we're not seeing something resembling the 1990s
tech bubble, when
valuations ballooned, a few major
tech giants led the way, and companies with no prospects to make money went public.
That's a key difference compared with the dotcom
bubble in 1999 - 2000, when
tech valuations blew through the roof more on hope and promises than actual earnings prospects.
On the other side of the duel are those that counter that, while
tech stocks are perhaps not «cheap», their current
valuations are nowhere near the nose - bleed levels of a
bubble.
Essays discussing the absurd
valuations at the height of the
tech bubble, and the miscalculations of investment banks, the Federal Reserve, mortgage lenders and others during the housing
bubble.
That's what drove the internet and
tech stock
bubbles of high
valuations.
History is replete with such self - reinforcing trends divorced from
valuations: the tulip craze in 1630s Holland, the South Sea
Bubble of 1720, railway manias of the mid-1800s, the roaring bull market of the 1920s, Nifty Fifty stocks in the 1960s, Japan's asset price bubble of the 1980s, and the late 1990s tech bubble, to name just
Bubble of 1720, railway manias of the mid-1800s, the roaring bull market of the 1920s, Nifty Fifty stocks in the 1960s, Japan's asset price
bubble of the 1980s, and the late 1990s tech bubble, to name just
bubble of the 1980s, and the late 1990s
tech bubble, to name just
bubble, to name just a few.
On the other hand, the stock
valuation patterns from 2011 - 2016 are eerily reminiscent of what transpired (1994 - 1999) prior to the bursting of the
tech bubble.
«Momentum (growth) stocks trade at an extreme premium to value stocks, with the
valuation spread the highest since 1980, except for during the
tech bubble,» JPMorgan strategist Dubravko Lakos - Bujas wrote recently.
In June 2017, analysts in firms such as Goldman Sachs and UBS stated that the high
valuations and unusual low volatility attached to these stocks are similar to
tech stocks which crashed after the
tech bubble burst in 2000.
Adhering to the 15 P / E
valuation reference during the
tech bubble would have avoided years of poor performance as price moved into alignment.
An example is the
Tech bubble of 1999 - 2000, when overall
valuations were very high, but there existed many opportunities in «old - world» industries that didn't get caught up in the speculative craze that affected technology, telecommunications and media stocks.
Having said that, the validity of a story, at the end of the day, can't justify the insane gains that we are experiencing currently, just as the validity of the dot - com story didn't justify the lofty
valuations of basically non-existent business during the late phase of the
tech -
bubble.