As some tech companies are selling for billions, some people worry they're seeing a repeat of the tech bubble of 2000, when the dot-coms went bust. I'm among those worriers!
One top investor, David Einhorn, says we're in a new bubble, which could affect tech stocks.
“There is a clear consensus that we are witnessing our second tech bubble in 15 years,” said Mr. Einhorn of Greenlight Capital Inc. “What is uncertain is how much further the bubble can expand, and what might pop it.”
He described the current bubble as “an echo of the previous tech bubble, but with fewer large capitalization stocks and much less public enthusiasm.”
Unless things cool down evenly, it could all collapse again!
The last time the Internet bubble burst in the early 2000s, Cisco Systems dropped 89% and Amazon.com Inc. fell 93%, he said. “While we aren’t predicting a complete repeat of the collapse, history illustrates that there is enough potential downside in these [momentum] names to justify the risk of shorting them,” Mr. Einhorn said.
No matter what happens, you need to be watching your money. Here are my 5 best apps for stock market and financial help.