(Via Ensight) Hype breeds Hype,which breeds mergers, which breeds insane share prices, which breeds a correction (Writing about Google's marketcap).
Anyone who thinks that numbers keep going up at growth rates of 30% per month is kidding themselves. Yes, Google’s earnings should grow by roughly 300-500% over the next 4 years. But, that doesn’t mean they should have a market cap which is flirting with the 100B$ mark (on earnings that are barely flirting with the 5B$ mark).
That’s not to say that one is not happy that there are 22 more friends who are millionaires this year than last. They’re all really, really great people and deserve all the best that life has to offer. However, at what point do we as an industry actually step back and say “okay, hangon, this company with no income, no business model and 1 million users might be nice to have, but maybe it just ain’t worth 30 million dollars"?!
|
