Why This Tech Bubble is Worse Than the Tech Bubble of 2000

[theag]

http://blogmaverick.com/2015/03/04/why-this-tech-bubble-is-worse-than-the-tech-bubble-of-2000/

The bubble today comes from private investors who are investing in apps and small tech companies.

Great post by Cuban.

 

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[Ninjakid]

Investors are literally throwing money at these newbies like they're strippers

 

[GuestUser113]

I think he might still be pissed off at Lori.

 

[Charnell]

Makes sense. If those companies end up falling through, what do you get? A piece of the platter of one of their hard drives?

 

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[Vansita]

People have been trying to jam apps down my throat for years.. They just give me calculations and when I ask more about it, they say.. oh its not built yet, or, oh its still developing, but we need x money in advance.. total hog wash.

 

[Ninjakid]

People have been trying to jam apps down my throat for years.. They just give me calculations and when I ask more about it, they say.. oh its not built yet, or, oh its still developing, but we need x money in advance.. total hog wash.

Assuming one has all the equipment, developing an app costs nothing. What costs money is growing the app to a wider audience. But if they haven't even developed a working app because they don't have money, I call bullshit

 

[D11FYY]

It is a great post but I laugh how he signs it off in mentioning an App hes on

 

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[Vansita]

It is a great post but I laugh how he signs it off in mentioning an App hes on

Well, thats how The cuban cigar does it! But, after watching the shark tank segment, I understand. He believes just like all the other bubbles, too much garbage is being formed, and its going to get noticed soon, and.. POP

 

[MyronGainz]

I'm a huge Mark Cuban fan, but I think this post was way off.

Comparing small-scale angel investing to the hyper-valuations of companies on some of the world's largest stock exchanges? Mutual funds, retirement funds, pensions, university endowments held positions in tech stocks during the tech bubble.

The post is pure anecdotal, and he realized that, which is why he followed up with this post http://blogmaverick.com/2015/03/05/...is-worse-than-the-tech-bubble-of-2000-part-2/

"Does anyone have any data I can use?" lol

 

[PhotoKid95]

I feel like the way investors fund companies at such a high valuation is similar to buying a bunch of penny stocks from different companies...
the ROI on some companies could be insane if they go the right direction.

 

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[Jake]

"For those who can’t figure out how to be Angels. You can sign up to be part of the new excitement called Equity Crowd Funding. Equity Crowd Funding allows you to join the masses to chase investments with as little as 5k dollars. Oh the possibilities !!"

Fails to mention that investors still must be "Accredited"

But he does point out a significant flaw that comes with putting restrictions or choke points on markets.

 

[TennisOrDie]

This market is going to crash hard and I'm going to make a ton of money shorting it
Every bubble in the history of the world has popped...It's only a matter of time

 

[Digamma]

People have been trying to jam apps down my throat for years.. They just give me calculations and when I ask more about it, they say.. oh its not built yet, or, oh its still developing, but we need x money in advance.. total hog wash.

Hog wash it is.
Startups are burning cash like it's pellet fuel, literally wasting it on cool workplaces, cool cars, cool teams. It's absolutely ridiculous how little productive they manage to be with all the talking of "agile" and "fail fast".
It's a time of wonder, really. You see people who don't have a clue, neither on the business not the technical side of things, and these people are getting huge infusions of cash from people who should know better.

I don't know if this market is going to crash or not. I cannot foresee the market.
I also don't know if valuations are off the rails or not. Maybe investors know better than me.
But. I do know that when companies that don't even have a product out yet burn through cash buying Teslas something is F*cking wrong.

 

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