Twitter's IPO Is More Proof That Tech Is In A Massive Bubble

[Archean]

Twitter's IPO Is More Proof That Tech Is In A Massive Bubble

Like most other publicly traded Web 2.0 or social media companies, Twitter is extremely overvalued: it now has a lofty $25 billion market capitalization despite accumulating $300 million in losses over the past three years, including a $65 million loss in the most recent quarter. Taking a cue from the Dot-com bubble’s playbook, investors have resorted to valuing today’s profitless tech companies on a price-to-sales ratio basis, yet even this metric shows that Twitter’s valuation is quite overvalued at 22 times its expected 2014 sales.....

 

[slh28]

I don't think this is nearly as bad as the dot com bubble, back then any random tech company had ludicrous valuations. Twitter and Facebook are still building up their user base rather than monetizing everything (like Google in the beginning).

 

[davislane1]

Only one of a few major bubbles currently inflating. Though, the overall equities bubble is of more concern than tech alone.

 

[Archean]

Then there is not so small matter of brewing trouble of securities, this is from Businessweek:

“U.S. government debt has already lost some of its appeal among foreign investors. They were net sellers of Treasuries for five-straight months ended August, disposing of $133 billion in that span, last week’s Treasury data showed."

What this gibberish means is owning fixed income securities is a risk (according to Bloomberg, Barclays, and Goldman etc.).[FONT=Calibri][/FONT]

In simple words, if things continue as they are, US $ will continue to loose its value, as a holding currency.