EP25: Are We In A Tech Bubble?
In this week's episode, we take a look at bubbles - (1) how they form, (2) what are the common characteristics of bubbles, and (3) what causes them to burst. I also take a look at some of the current metrics we have for the tech sector today and compare it to the same metrics back in the dotcom crash of 2000 to decide if we're in bubble territory or not.
The Guardian: "Twenty years after the dotcom crash, is tech’s bubble about to burst again?"
The Guardian: "Airbnb soars to near $100bn valuation as shares more than double in IPO"
Greenlight Capital Letter to Shareholders, 27 Oct 2020
Fortune.com Article: "3 ways tech stocks resemble the 2000 bubble—and one way they don’t"
Business Insider: David Einhorn Calls a Bubble
Business Insider: "Why Amazon, Tesla, and other 'Elite Eight' mega-cap titans look to be in a bubble despite strong profit growth, according to one research firm"
Wall Street Journal: "Investors Double Down on Stocks, Pushing Margin Debt to Record"
FAANGM Market Caps from Yardeni Research
Demystifying Snowflake: The Biggest Software IPO in History