http://gigaom.com/2012/07/09/whats-wrong-with-the-tech-valuations/ Fri, 24 May 2013 22:03:13 +0000 hourly 1 http://wordpress.com/ http://gigaom.com/2012/07/09/whats-wrong-with-the-tech-valuations/#comment-862489 Tue, 10 Jul 2012 11:51:24 +0000 http://gigaom.com/?p=540778#comment-862489 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.

]]> http://gigaom.com/2012/07/09/whats-wrong-with-the-tech-valuations/#comment-862417 Tue, 10 Jul 2012 07:01:05 +0000 http://gigaom.com/?p=540778#comment-862417 The problem I see with these high P/E values is this: None of these companies have proven that they can actually earn money quarter after quarter. It’s ridiculous.
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]]> http://gigaom.com/2012/07/09/whats-wrong-with-the-tech-valuations/#comment-862319 Mon, 09 Jul 2012 23:54:02 +0000 http://gigaom.com/?p=540778#comment-862319 Tech companies are valued according to the assumed irrationality of the retail market.

]]> http://gigaom.com/2012/07/09/whats-wrong-with-the-tech-valuations/#comment-862304 Mon, 09 Jul 2012 22:56:03 +0000 http://gigaom.com/?p=540778#comment-862304 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.

]]> http://gigaom.com/2012/07/09/whats-wrong-with-the-tech-valuations/#comment-862301 Mon, 09 Jul 2012 22:50:50 +0000 http://gigaom.com/?p=540778#comment-862301 Markets always trade on forward expectations.

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