The plunge in Facebook’s stock price, the MoviePass debacle, it’s all starting to feel a little like the bubble is preparing to burst. Half these companies never turn a profit - Uber, Lyft, Spotify, Twitter, Snapchat, etc. etc. Yet they have billion dollar valuations. The market is totally overheated right now imo. Watch for a crash within a year.
It's all about the "dream" of growth. To heck with a real plan and execution.
I just hope the markets do not throw out the baby with the bathwater this time. There are plenty of "tech" companies out there making lots of money and growing more than fine . . . think of Apple, Amazon, and Microsoft. Heck, even Facebook is actually doing fine . . . in the last couple quarters they just got *way* too far out in front of where they should have been when looking at anything close to their fundamentals. Back in 2001-2003 there were also companies who still made healthy amounts of money. But almost everything was affected, unfortunately. Personally, I am hoping a major correction happens sooner than later, but I hope it is a rational one.
I hate to pick out just one company, since so many seem to be playing this game . . . but if a few companies like Snap dropped by 80% or more . . . and the others that are actually real sustainable tech companies just held steady . . . we could get back to some semblance of reality again. It would definitely hurt the gamblers and the younger people who just need to learn an important life lesson. But it would be a healthy sign for the broader markets/economy.
Well, it would be for a while. Until the next cycle of froth . . .