Curious to hear thoughts on this article https://www.barrons.com/articles/soaring-software-stocks-show-signs-of-a-bubble-51564188580 Do you think companies like Workday and Servicenow are overvalued?
Everything is overvalued , there is too much money pumped into markets. It might be a good time to diversify to stable companies with good P/Es
Words.
Absolutely. Tech bubble inevitable when you have sky high valuations with no clear path to profitability! VC inflow in not infinite
What’s with the horrible link? Everything starting from the ‘?’ In the link can be deleted.
Fixed. :) Sorry about that.
'?' isn't required either.
Software is unlike anything in the market. You pay your costs upfront, and then what you sell from there is your profit. Most products require continuous manufacturing, and tech just requires some patches. Tech is extremely profitable compared to a car or something of that nature. Tech will continue to drive a high value until there is a new paradigm that can generate more value.
Interesting. So do you think places like Workday and ServiceNow are sustainable?
I’m not sure on their specifics I’m just speaking generally. There are almost no economies of scale with software.
High stock price does not equal bubble...
Heard of dot com bubble?
I think we’re in a VC tech bubble not overall tech bubble. Lots of rapidly scaling start ups with unsustainable business models bleeding cash focused on making an exit/getting acquired
Possibly. Many top companies are, or were until recently, holding onto cash and running tight ships after their 2001 and 2008 experiences. They only spend for the most critical requirements. The oldies are waiting for the hype bubble to crash and they'll open up after that.
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