Second dot.com bubble?

14 replies
What do you think? Are we in a second dot.com bubble? I'd say yes, but not quite as bad as the original one. This is a good read: http://finance.yahoo.com/news/shocki...075808443.html
#bubble #dotcom
  • Profile picture of the author SEO Power
    That made for an interesting read. I agree with the writer because everything he mentioned is currently happening. .COM domains are losing their value.
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  • Profile picture of the author RobertBayes
    I completely disagree.

    For one thing, the 'examples' cited in that article are entirely different from the "dot-com bubble" scenario - they have enormous user bases, generate enormous amounts of revenue regardless of whether or not they're profitable, etc.

    The "dot-com bubble" was characterized by an overzealous willingness to fund, and attribute hugely unrealistic valuations, to "idea-ware", businesses & products that were more 'ideas' than actual functioning businesses.

    Robert
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    • Profile picture of the author NobleSavage
      Mostly what I can tell is the "new" business model is to sell ads and data mine users. You really think WhatsApp was worth $9 billion -- for a ******* chat app? Yeah, they have a 500 million users, mostly to get around SMS charges. What happens when the carriers give free SMS? After spending 20 years on the net I've learned that users aren't loyal to shit. They will jump on the next fad before you can say AOL.
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  • Profile picture of the author Chris30K
    It's impossible to predict the next ".com" bubble because almost all businesses are online now. Furthermore, it's impossible for anybody to predict the stock market; not even Benjamin Graham could do this.
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    • Profile picture of the author NobleSavage
      Originally Posted by Chris30K View Post

      It's impossible to predict the next ".com" bubble because almost all businesses are online now. Furthermore, it's impossible for anybody to predict the stock market; not even Benjamin Graham could do this.
      I generally agree with this. As the saying goes: "It is difficult to make predictions, especially about the future". I still think it's worthwhile to discuss. It didn't take a brain surgeon to figure we were in a housing bubble a while back. Anyone, paying attention caught that one.

      Benjamin Graham was a value investor and wouldn't have touched any of these companies we are talking about.
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  • Profile picture of the author LiftMyRank
    The difference between now and the late 90s is that internet businesses now actually have revenues and profits.....
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  • Profile picture of the author SamZig
    I think the investment decisions are more matured than what they used to be in the 90's.
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    • Profile picture of the author NobleSavage
      Originally Posted by SamZig View Post

      I think the investment decisions are more matured than what they used to be in the 90's.
      The 90's were mostly IPO's. This time it's mostly VC money. You would think the VC's are smarter but I'm not so sure. They have eased the restrictions on private money getting into venture pools and I'm sure someone is getting rich off the transactions.

      I like to follow Chrunchbase CrunchBase - The world's most comprehensive dataset of startup activity and it's accessible to everyone.
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      • Profile picture of the author questwiz
        It's not a question of if but when. There are so many startups that are built around pointless trinket apps. I'm not sure if it will be as big as the first crash of 2001 though. It will be interesting to see what the next 5 years has in store. Will Facebook still be relevant? It lost relevance for me 3 years ago.
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        • Profile picture of the author NobleSavage
          Originally Posted by questwiz View Post

          It's not a question of if but when. There are so many startups that are built around pointless trinket apps. I'm not sure if it will be as big as the first crash of 2001 though. It will be interesting to see what the next 5 years has in store. Will Facebook still be relevant? It lost relevance for me 3 years ago.
          That is a difficult call. There were so many social networks before Facebook. They started as semi-private, you had to have a University ID to get in. Now anyone can join. Invite only, seems to work well to launch a product i.e. gmail. People really dig exclusivity or thinking they are special. I've been following www.asmallworld.com/
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  • All he talked about was the value of technology service sites and social media sites. It wasnt that interesting. I like reads on market disruption.

    Its obvious that this trend would end. Its definitely something to get bored of
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  • I'm divided in this topic.

    In one hand, the DOT COM space has gone professional and now making quarterly profits actually matter (like any other company).

    In the other hand, there are some DOT COM giants that simply cannot justify their $$$ valuation from a business point of view. For example: WhatsApp or Twitter. Those companies make no profit whatsoever, year after year, but they're valued in the billions.

    Mind you, these are not startups where valuation is based on potential. These are, in the other hand, fully established companies that are yet to find their rightful "business model" beyond building a user base, data mining and social exposure.

    Can anyone tell me how on Earth is WhatsApp going to generate a sustainable revenue? Injecting ads right into your SMS-chats? that won't fly, too intrusive. So... what else? At one point these companies will have to justify their business existence with actual profits like any other business!
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    • Profile picture of the author Gh0zt
      Originally Posted by Anonymous Affiliate View Post

      I'm divided in this topic.

      In one hand, the DOT COM space has gone professional and now making quarterly profits actually matter (like any other company).

      In the other hand, there are some DOT COM giants that simply cannot justify their $$$ valuation from a business point of view. For example: WhatsApp or Twitter. Those companies make no profit whatsoever, year after year, but they're valued in the billions.

      Mind you, these are not startups where valuation is based on potential. These are, in the other hand, fully established companies that are yet to find their rightful "business model" beyond building a user base, data mining and social exposure.

      Can anyone tell me how on Earth is WhatsApp going to generate a sustainable revenue? Injecting ads right into your SMS-chats? that won't fly, too intrusive. So... what else? At one point these companies will have to justify their business existence with actual profits like any other business!

      How do apps which make zero-profit make profit?

      They sell your information. Data-mining [Look up data mining, even super-markets sell information, data, that they "mine", it get's deep too!!]
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  • Profile picture of the author MrFume
    There is a legitimate business model of pre-funding an idea before it is actually built the big differences with the dot com bubble is that these ideas actually do become realities and business online takes place every second of every day. The late 90's most people had 46k modems, remember those squawk boxes and pages taking 2 minutes to load...let alone watching videos in real time? The internet today is a genuinely viable medium, offline as well as online business equally rely on the internet for their livelihood - it is a chalk & cheese situation.
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