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Silicon Valley Could Be Heading For a New Stock Collapse.
First time accepted submitter billcarson writes "Even though for most of us the recession is far from over, analysts are worried the technology sector might be near the end of a bubble. Technology stocks are at records highs at the moment. Companies that have no sound business plan have no difficulty in raising capital to fund their crazy dreams. Even Yahoo is again buying companies without real profit (Tumblr). Andreessen Horowitz, a major venture capitalist in Silicon Valley is already pulling up the ladder. Might this be an indicator for more woe to come?"
Google, Apple, and a few others are overvalued right now as well.
How is Apple overvalued? Their p/e ratio is 13.25.
Tech unemployment for the third quarter is at about 3.9%
http://marketing.dice.com/pdf/2013-q3_TechTrends_Report.pdf
You know Yahoo has positive earnings, right? It's net was more than a billion (EBITDA) last quarter.
In July it overtook Google as the most visited US web property and remains #1 to date (comScore)?
Desperate moves?
About the same as the average of all people w/ a bachelor's or higher: http://www.bls.gov/news.release/empsit.t04.htm
Definitely no indication of a "shortage", unless there is a shortage of people for all types of work that require a college education. If anyone actually believes that, then I've got a bridge to sell them. Silicon Valley BS debunked once again by the actual statistics.
Poe's law: Without a blatant display of humor, it is impossible to create a parody of extremism or fundamentalism that someone won't mistake for the real thing.
While unemployment generally may be high, in the tech sector it is very low.
Tech companies, led by Mark Zuckerberg at Facebook, are lobbying Congress to relax immigration rules so they can hire more foreign talent because they believe domestic talent has gotten too scarce and too expensive. It's driving up wages bills like crazy. Matt Allen, a tech recruiter at Vertical Move, told me recently:
of course he told you that, he's a recruiter! the truth is that the tech sector jobs are either offering insultingly low wages or out-sourcing to save a buck, the bigger the pool, the more control they can screw people over, especially if you are under the threat of being deported if they fire you. The whole rent-a-coder thing went awry because people offer to work for wages below minimum wage because in their country, $3/hr is a good wage and tax free by keeping it in paypal.
You don't see every tech person driving around in beamers.
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