Tech IPO Bubble Mania, who will sink
Hot technology companies are readying for IPO while some like LinkedIn are already in the stock market. But valuations are way in the north even for companies without any solid revenues; Twitter is valued at $8 billion with its new round of funding while no concrete revenues have emerged from the company. Other hot IPOs in the works is Groupon valued at $30 billion and Zynga valued at $20 billion. Analysts believe LinkedIn shares are priced above their intrinsic worth.
LinkedIn shares doubled on the IPO day and have since fluctuated going down and up. What can save Linkedin from its stock plunging is the impressive business model from premium accounts, hiring solutions, and target advertising to highly professional audience. Marc Andreessen, a Silicon Valley venture capitalist believes that bubble scare is psychological scare from 10 years ago that people have carried forward.












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