[quote=AN][quote=livinincali][quote=AN]I think we’re still far far away from the 90s bubble. I remember buying anything with a .com and your “investment” would go up 50% in a few months.[/quote]
You mean like these recent IPOs
GPRO
KITE
ARDX
ZSPH
VNOM
MRD
ANET
RDUS
AGRX
SDPI
JD
SEMI
TRUE
ZEN[/quote]Back then, you can pick almost any stock (not just IPO) that have a .com and you can easily double your money in a few months. I’m not saying there aren’t overvalued stocks today. I’m just saying the irrational exuberance were much much more obvious back then. You know you’re in bubble territory when everybody is talking about how much money they made from stocks.
Ariba, Inc. went up over 4X in 4 months.
JDSU went up over 4X in 4 months.
QCOM went up 3X in 2 months.
I can go on and on. But you get the point. Not only start up were seeing 3x increase in stock price in a span of a few months. To be in the same scale today as it was in 1999-2000, FB has to be ~200, TWTR has to be ~180, etc.[/quote]
QCOM in 1999 had a market cap of about 75 billion and annual revenues of about 4 billion. So there price to revenue was 18.75. FB has a market cap of 167 billion and revenues of roughly 10 billion = 16.7 price to revenue. TWTR is 23 billion market with revenue projected to be about 1 billion = 23.0 price to revenue. So in valuation terms FB and TWTR are pretty close to where QCOM was at the peak of the 1999 bubble. TWTR is higher, FB is slightly lower. The biggest difference is when they IPO QCOM was a IPO well before the bubble FB and TWTR have both IPOed somewhere in the middle of this bubble.