Is this market sustainable?

Nov 3, 2021 22 Comments

For those who went through dot com bubble, I just want to ask you questions if what you experienced is similar to what is going on now.

1. What used to whoa people was 400k-550k TC a few years back. But now that range seems to be 800k+

2. People say market is hot these days. Even Startups pay like 200k base

3. A lot of startups get massive series a, b. In case of Rippling, series C gets them to 6.5B valuation. Clubhouse goes to 4B since existing only for 2 years.

4. Massive number of IPOs. The days that were waiting for a couple anticipated ipos (pinterest, dropbox, airbnb) are gone. Now a lot of starts go IPO and even Trump media company goes public via SPAC

5. Valuations go crazy. Fundamentals are for boomers now. Tesla profits 1.6B and is valued at $1T. Many other companies go really big really fast

Are we in this era where digital transformation sweeps the whole world and we are just starting to see how tech is getting market share from dinosaurs old fashioned world?

Or will it swing back and conform to the established fundamentals that we are used to?

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TOP 22 Comments
  • IBM
    4ax0r

    Go to company page IBM

    4ax0r
    There was no LC back then so we had that.
    Nov 3, 2021 3
    • IBM
      4ax0r

      Go to company page IBM

      4ax0r
      Oh yeah, I forgot about those. What kind of tree would you be and stuff like that. No pressure to cram for months though.
      Nov 3, 2021
    • It's actually somewhat ironic that we do leetcode now, but didn't back then. I've actually coded things like binary tree traversals, circular buffers, sliding window averages for production software. Now that we'd basically find a library to do those things, we get asked to do them as proof that we'll be able to do a job that no longer requires such things.

      It's pretty ridiculous, actually.
      Nov 3, 2021
  • Yelp
    zilowcrash

    Go to company page Yelp

    zilowcrash
    Do you see companies making money? That wasn’t happening in bubbles.
    Nov 3, 2021 2
    • Cisco
      gazni

      Go to company page Cisco

      gazni
      companies are making money but not all which are going public. Number of companies going public is way more than a few which actually make money. Also valuations are crazy high (as op mentioned tesla for 1.6B profit is valued at 1T).. so even if companies make money, it is not proportional to its value.
      So in short, companies are not making enough money to justify valuation. And many companies do not even make money.
      Companies not making money or negative balance sheet : EVs lucid, rivian, fastly, wish ,spacs (long list). Company making peanut profits : confluent, amplitude, roblox, pltr, robinhood, tsla(compared to valuation), coinbase(compared to valuation)
      Nov 3, 2021
    • Adding to the list: Z, SNAP, RDFN, PINS
      Nov 4, 2021
  • The market is not sustainable.

    With low interest rates, folks are chasing higher returns with more risk, which leads to poor investments.
    Nov 3, 2021 0
  • IBM
    4ax0r

    Go to company page IBM

    4ax0r
    Govt monetary policy is way looser than back then. They used to watch inflation like hawks now no one cares we are hyperinflating everyone's retirement savings away.
    Nov 3, 2021 0
  • Blend
    PJku30

    Go to company page Blend

    PJku30
    It might be.

    Or, it might not be.

    Or both.
    Nov 3, 2021 1