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Analysts are predicting that the tech market is marching straight into another dot com bubble similar to the one that struck almost a decade ago causing massive losses to companies in the silicon valley and affecting the US economy. Some of the warning signs of the tech bubble have already begun to emerge including a rush by banks to buy large stage tech companies expected to have an IPO.
NY Times in a report said that this time, the firms looks much different than those during the dotcom bubble. For instance the firms are a lot less than those that went public in 1999. Also organization and structure is much different. During the last tech bubble, it took almost 20 big firms to reach the $71 billion public mark, a number that is achieved today by just five large tech firms – Facebook, Zynga, Groupon, LinkedIn and Twitter.
Web and social media is real business now but are we on the verge of another tech bust is still a mystery. Market analysts say that might be highly unlikely. “New companies start up and fail real fast unlike back in 1999 when just about everyone had an IPO”, said Jeffrey who is a senior market analyst.
What do you think? Are we on the verge of another market Tech Bubble?