It seems like each and every week we read reports of the staggering valuations of the major tech companies, many of which are in the social space.
Twitter, which has yet to turn a profit and hasn’t demonstrated a viable long-term business plan, was recently priced at $8 billion. Groupon’s $20 billion-plus valuation has been described as fiction. LinkedIn has already gone public and are trading around $110/share – over twice their $45 pricing. And Facebook is rapidly heading towards a $100 billion IPO. Maybe more.
So here’s the big question: are we in the middle of a tech boom… or facing the mire of another tech bubble?