With a new crop of Internet IPOs including household names like Groupon – and possibly Facebook – set to trade publicly at enormous valuations, many pundits are starting to make comparisons to the heady days we saw at the turn of the century. Will investors’ interest in these social media startups usher in a new bull market or are we doomed to repeat the mistakes of 1999-2000 with a new tech bubble? It seems as though overvalued Internet stocks are a bit like horror movies for investors… they’re always followed by a sequel. At least that’s what those in the “Bubble 2.0” crowd think. The belief here is that the same sequence of events that fueled the first dot com bubble is reoccurring now; that the new class of Internet IPOs, from Linkedin, Pandora and Zillow plus the upcoming Groupon and Zynga offerings, and the massive $100 billion valuation of Facebook, are stirring a mania that will result in a market crash like the horror story of 2000-2002. But before we paint the current market...
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