Value Investing Parallels between contemporary valuations and the Dot-com bubble? |
| Parallels between contemporary valuations and the Dot-com bubble? Posted: 24 Oct 2019 02:05 PM PDT I've read reports arguing that the current tech stock, and the increased presence of "unicorn" valuations (even with some of the more pessimistic IPOs that have occurred as of late), share a lot in common with the 90's stock bubble and subsequent pop, and that it will only be a matter of time before many big names bite the dust. Other opinions, argue that, yes, it bears some resemblance to the past, but that 2019 is very different from 1999 and 2000, and that banks and investors have matured enough to dismiss the type of ludicrous deals that took place two decades ago. What is your opinion? What do the numbers say? Edit: My opinion is that it's a different era, and that there is much more skepticism over companies who can't produce results and profit. There are some that are still in limbo, and so that's why we haven't seen them fold. I also think they've been around for longer, and still show "potential" promise, as opposed to some of the mad ideas that were supposedly "business" concepts in the past, but really only lined the pockets of the wannabe moguls who peddled them as soon to be lucrative and successful ventures. I happened to read a lot of dissimilar opinions so mostly I wanted to hear some more thoughts on the subject. [link] [comments]  |
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