Has the Second Dotcom Bubble Started?

An article at the Guardian asks whether the exceedingly high valuations of social tech companies signify the arrival of a second dotcom bubble. Quoting: "Every week, one of the new generation of internet firms seems to attract a sky-high valuation. Zynga, the social-network games company that has tempted millions to grow virtual vegetables in its FarmVille game, has been valued at $9bn (£5.54bn). Profitless Twitter is said to be worth $10bn. Groupon, vendor of online discounts, rejected a $6bn offer from Google and is considering a flotation with a potential valuation of $15bn. Tech-watchers say this is just the start: the real boom will come when Facebook, the head boy of the new dotcom frenzy, goes public, probably next year. ... The last dotcom boom really took off after the flotation of the internet software company Netscape in 1995. Patrick says this time it's likely to be Facebook that lights the fuse. So far, private investors have been locked out of the New Thing. But JP Morgan is setting up a fund, and Goldman Sachs recently tried to get its clients' money into Facebook."

Comments

Here Comes Another Bubble

[Anonymous Coward]

http://youtu.be/I6IQ_FOCE6I

"msn messenger is a really great product"

[unity100]

why should we take the opinion of someone who utters such a sentence ?

Re:Picard Facepalm

[0123456]

It has 500 million users, which looks like a lot, but that puts it's worth at $100 per user. Do you think you are worth $100 to facebook?

If my experience is anything to go by, 400,000,000 of those will be spam users trying to scam you and 50,000,000 of the rest won't have logged on in six months.