Selective bubble market. Zynga and GroupOn making tons of real physical money and being valued at something like 25X earnings isn't a bubble. But absurd valuations based purely on audience size with little revenue (Twitter and Facebook) sure as heck is a bubble.
absurd valuations based purely on audience size with little revenue (Twitter and Facebook) sure as heck is a bubble.
That's not a bubble; that is just overvaluation of a couple of companies. "Bubble" implies that the whole of a sector is wildly overvalued. "Selective bubble" is an oxymoron.
A bubble can describe anything that trades significantly above its net asset value. Investors are overvaluing (in the billions) tech companies with no revenue or business model. The bubble just isn't industry-wide yet.
