As predictably as the sun rises and sets, so too do economic bubbles inflate and then pop, bringing euphoria followed by suicidal gloom. Where will the next bubble in our economy be? Today, we turn our keen eye to the source of all troubles: tech companies.
Tech companies, tech companies... they did this bubble thing once before, right? Sure did. But as you, the wise investor, well know, "Everything is different now™." So, let's peek in on this Wall Street Journal report on the current state of tech IPOs—which are so hot right now!
Sixty-eight percent of U.S.-listed technology debuts this year, or 19 out of 28 deals, have been companies that lost money in the prior fiscal year or past 12 months, according to Jay Ritter , professor of finance at the University of Florida. That is the highest percentage since 2007, and 2001 before that.
2007, 2001... what did those years have in common? Eh, no time to look it up—I've got money to make, which I will then invest in the Twitter IPO! Ea$$$y money, hashtag #dolla$$$!