Back in November 2007, early Facebook investor, Founders Fund VC and Clarium Capital hedge fund manager Peter Thiel told Kara Swisher: “There’s absolutely no bubble in technology.”
In China, finance and housing, sure. But not technology.
Thirteen months later, the landscape in tech is different. Yahoo is about to go through its second layoffs since February. Google is cutting costs and squeezing out revenue. Facebook employees can’t sell their stock at a $4 billion valuation, let alone the $15 billion valuation Microsoft set in Fall 2007. Layoffs about. Startups are failing. And Thiel’s hedge fund lost 40% in three months.
But today on CNBC Thiel said there were three bubbles that lead to our current recession: Housing, finance and emerging markets. But not technology.
“The computer science, IT revolution is still continuing,” Thiel said, “and that’s probably the still the best place to focus on in the next 10, 15 years.”