Almost 60% more IPOs in Q2 than last year, and 20 more than Q1. Are these all going to be successful companies, or are we just setting ourselves up for a big bust? Source: Over 90 Effective IPOs in Q2
Well, as I am a pessimist: I do have to say that it's highly likely that a lot of these companies will indeed fail, and a lot of people will then lose a lot of money. But at the same time, I do think that there are so many new technologies coming out each and every day, and a new company coming out each and every day to manufacture this new technological advancement: that it may actually be a point where... Yes, they may all be successful. There are of course many companies in the same field and all, but I think a big part of all these new IPOs is part of new technological advancements, in one way or another.
Well, it's impossible for all of them to succeed. It's just the way of the world. But I wouldn't say we're in a bubble exactly. Tech is going to continue to grow, and new technologies are coming out every day, whether they be brand new things or simply improvements upon technology from other companies. Asking if we're in a tech bubble is akin to asking if steam power was a bubble that was going to burst any day now.
I don't think it's a bubble (well, the social media sites mainly are) but overall, technology is still growing on a global scale. Who doesn't have a smartphone now?
I wouldn't even say that social media sites are a bubble. Not in general anyways, but each specific one may be.
Some very smart people believe so. I have a fair amount of money in a few tech names that have exploded in recent years, but I've learned that it never lasts. What goes up eventually comes down at least somewhat - or at best eventually stalls out, at least for periods of time. Volatility is the price you pay for high performance.
The way I look at it, the only way most of these social media companies make money is through advertisements. There's only so much money to go around for internet marketing. So the more companies we have, the lower amount of money can be made.
We are not so much in a tech bubble but Technology stock pay well, and are believed to have a long term outlook. Companies such as Google, Facebook, and You Tube are the three most used websites in the world according to the Alexa analytics traking site. Alexa offers some measured metrics to determine which among the world's websites are watched the most. That Alexa site has been used to determine how much Google and others can charge for advertising. Those metrics can also be used to by investors to determine if Google or others are viable. If they were viable then if would be safe to assume if it is worth investing. Those technological companies are viable, and worth investing; however, it would take tens of millions for an individual investor to make a huge profit.
Websites will continue to grow in my opinion. There is something new and more great always emerging, but it is important for the companies to keep innovating new technologies or they will fail. I think technology as a whole will continue to grow as it seems as though there is always a new electronic gadget coming out. I wonder if it will ever hit the ceiling?
Our technology is levelling off in certain areas. We have peaked with the technology inside our phones (for example). But, new technologies will be coming out. Keep an eye on glasses and contact lenses. Those will be the next "new technology". Wait for the smaller companies to get into this market.. some of those will be highly profitable.