More Evidence That We're Clearly In A Tech Bubble*

We were browsing a fine website when we saw this: 

tech bubble

Photo: Business Insider

This is so typical of the current discussion on the “tech bubble” that we had to memorialize it. “Everything’s crashing, so it’s clearly a bubble!”

When there was a tech bubble, companies with no profits went public and their stocks shot to the moon. Today, a company with a billion dollars in profits and 40% y/y growth goes public and its stock tanks immediately. Clearly the same thing. (Facebook’s stock is probably overvalued, but a stock being overvalued is not the same thing as a bubble. Stocks get overvalued all the time. A bubble is when everyone goes crazy and only buys buys buys.)

In case you’re still not convinced this is just like Pets.com, here’s how all the hot tech IPOs are doing lately (click to enlarge):

party like it's 1999

Photo: Google Finance

Yep. 1999 all over again.

MORE: A Complete Non-Tech Person’s Guide To The Tech Bubble (And Why There Isn’t One) →

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