A Bit of My Life » Tech Bubble Part II

Tech Bubble Part II – The Sequel?

Today I saw an article on how future capital businesses are valuing the site LinkedIn at 1 Billion dollars. That’s a lot of zeroes.

Then I log in to my LinkedIn account. What do I do with this? I import my e-mail contacts and add them to LinkedIn. That’s about it. I don’t actually DO anything with it beyond build a network, that one day I may plan to use for world domination, but that’s about the scope of it. You really have to ask yourself, as I did; is that worth a FREAKING BILLION DOLLARS?

Google may be worth a billion dollars (considering that I have no concept of money past about 5000.00, bear with me here), Facebook may be worth a billion dollars, but LinkedIn? LinkedIn? Seriously?

Then my little brain started wandering back to the heady days of the tech bubble. I remember my boss asking me, since I was the nerdiest person he knew, if he should buy Yahoo stock. My response was yes, to buy as much of it as possible as people are attaching false value to it rather quickly, and then sell it off in a year before it tanks. He never did buy it and he’s probably still kicking himself, because that turned out to be sound financial advice from a nerd straight out of school.

You can see little signs of a mini-bubble blowing up again, although I wouldn’t call a one billion dollar valuation of LinkedIn little. There’s always a story in the media about little software companies being purchased by big software companies, and these amounts are steadily creeping up and up. Much like what happened during the tech bubble.

Now I don’t think this means that everyone should divest themselves of tech stock entirely. I think we need a few more watermark signs like the LinkedIn one. But if that is any sign, I think a mini bubble burst is on the way.

LinkedIn. One Billion Dollars. Seriously.

Posted: June 18th, 2008 under Technobabble.
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Tech Bubble Part II – The Sequel?

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