Are We Heading For Another Tech Bubble Burst

[engine]

Facebook and Groupon have been given valuations, which, to me, seem completely over the top.

Are We Heading For Another Tech Bubble Burst [businessweek.com]

Tech valuations are once again soaring: Apple (AAPL) recently became the second most valuable company in the world, behind ExxonMobil (XOM), with a market cap of $305 billion. Even more striking is the $50 billion valuation that private investors have placed on Facebook. Groupon, a cyber-coupon company, turned down a $6 billion takeover offer from Google (GOOG) last month, and it's now considering an IPO that could reach $15 billion. "We may be on the cusp of another technology-driven boom," says Erik Brynjolfsson, director of the MIT Center for Digital Business.

[weeks]

Well, nothing has actually happened with Facebook and Groupon, but...yeah, many of the numbers tossed around about these two firms that I have seen don't seem to have that much to do the reality. Especially Groupon, which would be reasonable easy to copy by others. As noted here last week, Google is going to get into their biz. In the two markets I work in we've seen some local Groupon copycats get some traction.

Apple? Let's just say I would be very uncomfortable with Apple being part of the Dow Jones Index. They are not. And I'm a Mac person, but it looks to me that there are some impressive tablets coming out that have an edge on the iPad. And Netflix is working very hard, etc. The past is not prologue, especially in tech.

There is an article in the WSJ today saying investors are now looking at the basics more. I think that you and others asking this question points to that being true. They seem to be saying that people are still nuts, but not as nuts as they have been at times in the past.

Are we in a larger, overall bubble right now? Well, go look at the list of Dow firms.
[en.wikipedia.org...]

[jecasc]

Well, I am not in any bubble that's for sure.

[engine]

I always wondered if the original tech bubble was 'rover' in the cult 60s' TV show, 'The Prisoner.' If you've watched the show, you'll know rover.