With today’s generation spending more and more time in front of the screen and I don’t mean the TV, it would be hard not to see a second dot.com bubble looming. A new study by research firm Kelton Research found that 65% of Americans spend more time with their computer than their spouse, awkward! I myself spend a staggering 10 hours a day in front of the computer, whether it’s doing college work, watching videos on Youtube or browsing one of the many social networking sites. And yes before you ask, this is the norm. All I have to do is look to my left –someone on Facebook or to my right - someone on Youtube.
It actually feels like déjà vu all over again as the buzzword “bubble” begins to float around. Bubble 2.0 marks great business/financial opportunities, but a lot of moneymakers can smell the blood in the water and are lurking. I think Internet entrepreneurs have sobered up since the 90′s dot.com bubble and will not (hopefully) fall into the same trap this time around. But, some will, and could loose everything.
People have adopted the new paradigm mentality that “it’s different this time” and “these companies really are worth billions”, but would you take their word for it and invest your life savings? Thought not.
Lets just remind ourselves that the 1999 dot-com bubble was nothing new. We’ve had bubbles before it and will certainly have bubbles following it. For example, there was the CD-ROM bubble, which didn’t last too long collapsing almost overnight. Each succeeding bubble we’ve experienced appears to have been more dramatic than its predecessor. I’d nearly put money on it, that after the collapse of this so-called bubble 2.0, nobody will think of the dot-com bubble as anything other than a warm-up, but I could be wrong!
Today everything from Twitter to the local parish church has a social-networking angle. This scene is out of control and will certainly play a lead role in the collapse. From LinkedIn to Groupon to Facebook to Youtube. . . . these technology companies are milking the social media fad, securing crazy market valuations and partying like it's 1999. Anyone else a little worried?
American resume giant LinkedIn was the first of the major US social networks to go public and saw its shares more than double as they debuted on the New York Stock Exchange last year. Has LinkedIn sparked a social media goldrush?
Other social networks such as Groupon & Facebook are said to follow in LinkedIn’s footsteps early this year. Facebooks valuation is flirting with around $100 billion as it prepares for its IPO. But is this really cold hard cash? Or Is brand recognition once again overshadowing the sustainability of these valuations. This recent surge in IPO’s could be a sure sign that the bubble has started to inflate.
Unlike with the 90’s do.com, most of these businesses are coming to market with real track records, not just spontaneous ideas. However, even a proven record of success in this fast and loose environment is no indication that a “tech titan can retain its behemoth status for long”, just look at MySpace if you don’t believe me. Many people believe Facebook is impenetrable at the moment, but six years ago MySpace was at the top of the social networking heap, now its just a mere digital ghost town. Still think Facebook will be there forever?
Overall most experts believe we are in the process of another tech bubble but don’t think this one will be as dramatic. Do you think we are on the verge of another bubble?
This post concludes my blog on this topic. Therefore, I'd like to take the opportunity to thank you for reading. I hope you found it both interesting and enjoyable.
Thanks,
Brian O'Dowd.
No comments:
Post a Comment