5 thoughts on “What's wrong with the tech valuations?”

  1. It is more like they have a manic/depressive view of young tech companies. Make earnings like LinkedIn and they are wildly optimistic. If a company misses earnings, they will be severely punished. That said, it isn’t any different with other companies. The difference is more established companies have more predictable revenue on a quarterly basis.

  2. It does however seem that the lifecycles of tech companies are growing shorter. Does anyone really feel that the apex of Facebook is 20-30 years away from its IPO, rather than closer to 5? Of all the major tech companies founded from the mid-1990s onwards (plenty of which had their time in the spotlight at one point or another), only Amazon and Google have managed to display any sort of long-term staying power.

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