<story><title>Why This Tech Bubble is Worse Than the Tech Bubble of 2000</title><url>http://blogmaverick.com/2015/03/04/why-this-tech-bubble-is-worse-than-the-tech-bubble-of-2000/</url></story><parent_chain><item><author>austenallred</author><text>So Cuban started (what became) Broadcast.com, ramped it up to $13.5 Million revenue per quarter [1], and sold it to Yahoo for $5.7 billion (in stock, but we&amp;#x27;ll disregard that fact for now). On track to do $54 million in a year, means he sold for 1,000x one year&amp;#x27;s revenue.&lt;p&gt;15 years later, Facebook brings in $3.2 Billion in revenue and has a market cap of ~$41 Billion, or about 12.8 times one year&amp;#x27;s revenue. [2]&lt;p&gt;And we won&amp;#x27;t mention Google, despite the fact that they&amp;#x27;re the most obvious tech company to compare the likes of AOL to, because they make more money than God, and it would harm the argument. Uber, Twitter, etc. may be overvalued, but they bring in cold hard cash, and they&amp;#x27;re barely getting started.&lt;p&gt;Things are frothy right now, for sure; there are some really high rounds being raised that are justified by portfolio theory, and some no-product seed rounds at really high valuations. There will be some major catastrophes, and people will lose a lot of money.&lt;p&gt;But I have no idea how Cuban could possibly make the argument that &lt;i&gt;it&amp;#x27;s worse than 1999&lt;/i&gt;.&lt;p&gt;[1] &lt;a href=&quot;http://en.wikipedia.org/wiki/Mark_Cuban#Business_career&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;en.wikipedia.org&amp;#x2F;wiki&amp;#x2F;Mark_Cuban#Business_career&lt;/a&gt;
[2] &lt;a href=&quot;http://ycharts.com/companies/FB/market_cap&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;ycharts.com&amp;#x2F;companies&amp;#x2F;FB&amp;#x2F;market_cap&lt;/a&gt;</text></item></parent_chain><comment><author>eroo</author><text>He isn&amp;#x27;t arguing firms are overvalued by a greater degree now relative to 1999. He&amp;#x27;s arguing that investments in private firms, which are far more popular now, are worse for small players due to their lack of liquidity.&lt;p&gt;If things start going south in a private investment, a share holder may not be able to exit even at a large loss.</text></comment>
<story><title>Why This Tech Bubble is Worse Than the Tech Bubble of 2000</title><url>http://blogmaverick.com/2015/03/04/why-this-tech-bubble-is-worse-than-the-tech-bubble-of-2000/</url></story><parent_chain><item><author>austenallred</author><text>So Cuban started (what became) Broadcast.com, ramped it up to $13.5 Million revenue per quarter [1], and sold it to Yahoo for $5.7 billion (in stock, but we&amp;#x27;ll disregard that fact for now). On track to do $54 million in a year, means he sold for 1,000x one year&amp;#x27;s revenue.&lt;p&gt;15 years later, Facebook brings in $3.2 Billion in revenue and has a market cap of ~$41 Billion, or about 12.8 times one year&amp;#x27;s revenue. [2]&lt;p&gt;And we won&amp;#x27;t mention Google, despite the fact that they&amp;#x27;re the most obvious tech company to compare the likes of AOL to, because they make more money than God, and it would harm the argument. Uber, Twitter, etc. may be overvalued, but they bring in cold hard cash, and they&amp;#x27;re barely getting started.&lt;p&gt;Things are frothy right now, for sure; there are some really high rounds being raised that are justified by portfolio theory, and some no-product seed rounds at really high valuations. There will be some major catastrophes, and people will lose a lot of money.&lt;p&gt;But I have no idea how Cuban could possibly make the argument that &lt;i&gt;it&amp;#x27;s worse than 1999&lt;/i&gt;.&lt;p&gt;[1] &lt;a href=&quot;http://en.wikipedia.org/wiki/Mark_Cuban#Business_career&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;en.wikipedia.org&amp;#x2F;wiki&amp;#x2F;Mark_Cuban#Business_career&lt;/a&gt;
[2] &lt;a href=&quot;http://ycharts.com/companies/FB/market_cap&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;ycharts.com&amp;#x2F;companies&amp;#x2F;FB&amp;#x2F;market_cap&lt;/a&gt;</text></item></parent_chain><comment><author>CyberDildonics</author><text>Mark Cuban is the lottery winner who thinks he&amp;#x27;s Jim Clark.</text></comment>