Dotcom Bubble 2.0 hovers over US tech giants
Are the likes of Facebook, Apple, Amazon, Netflix and Google about to launch Dotcom Bubble 2.0?
The obvious question is whether the likes of Facebook, Apple, Amazon, Netflix and Google - collectively known as the FAANGs stocks - are merely pausing for breath after staggering rises so far this year or are about to launch Dotcom Bubble 2.0. Before the sell-off, Facebook, Amazon, Apple, Microsoft and Alphabet (Google's parent company) - had increased in value by $600-billion (R7.6-trillion). That's nosebleed territory. Comparing the value of Nasdaq with the S&P, a very rough way of gauging how excited investors are about tech stocks compared with other sectors, generates the kind of multiples last seen when the dotcom bubble was primed to burst at the end of the 1990s. The initial public offering of Snapchat earlier this year, which valued the social media company at $29-billion before ending up as a bit of a damp squib, also had a rather familiar feel to it for those with long enough memories. Fund managers seem to think that things are getting a little toppy. According to the l...
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