Monday, April 28, 2014

Is there a tech bubble?

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?



  1. 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.

  2. i 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.