I think Utsav asked in class if there is a tech bubble. Here is a video arguing against it. The video is almost 7 minutes, you do not have to watch it all.
Do you agree with the two experts? Are they arguments well supported?
Link: http://www.bbc.co.uk/programmes/p01wzwxf
I found the argument against the notion of another bubble convincing, particularly the part about per user valuation. Currently, companies are valued up to about $35 per user, whereas in the dot-com bubble this figure climbed up to $500-$600 per user. Mr. Milroy points out a few times that select companies such as Facebook who's revenues are centered around one source (advertisement) may be overvalued, but overall it does not seem to be a trend.
ReplyDeletei agree that it is highly unlikely that a tech bubble is brewing. it may not be until a few years till an actual tech bubble starts to emerge, given what milroy said.
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