_Loss-making Twitter has been valued at $10bn. Facebook is said to be worth more than Ford. Now, for some investors, the alarm bells are starting to ring_
This article at the Guardian explains the reason why the high valuations of social tech companies could led to a second dotcom bubble. There's a big gap between the real value of internet companies and their sky-high valuations; there's the sense that this isn't real money but abstract money. Alan Patrick said that a bubble is defined by too much money to invest in assets, greater production of those assets, and the need to find a greater fool who buy them. According to Patrick, there are 10 indicators that tell us when a bubble is being blown; and already 8 of these are present in the social tech boom.
Vocabulary
- Gold Rush
- To be worth
- To burst
- Hangout
- Claim
- Odds
- Dumb.money companies
- A flurry of new investements
- Stupid money
