Skip to comments.IPO Market Breeds Tech Stock Impostors
Posted on 09/06/2012 4:14:44 PM PDT by publius321
"The only thing we learn from history - is that we never learn from history." This great maxim accurately explains the insanity reflected in some tech stocks and companies masquerading within that genre. It is reminiscent of the late 1990s. Those were the days of $200 billion+ Yahoo and AOL evaluations (before ever turning a profit) and IPOs of some of the most preposterous business plans ever conceived.
I'm not referring to Apple's (AAPL) current valuation of $630 billion. I'm referring to companies like..." (continued)
(Excerpt) Read more at seekingalpha.com ...
Look at Motorola or Nokia or RIM -- dead quickly. Even HTC is now floundering.
If apple stops innovating or comes up with a big bomb, or, more likely, if someone else comes up with a game-changer (like Apple itself did with the iPhone), everything changes.
With bricks and mortar businesses it is a lot more difficult for a game-changer to change things overnight.
Microsoft in contrast has a more stable product base -- Windows which is a bread and butter product.
Thank you sir.
I agree with you about the tech industry; however, not about Apple. They have created a hell of an online retail market that didn’t exist before them and although other companies can compete, Apple has a hell of an annuity (aside from their great tech products) for themselves selling digital content and apps.
Online “retail stores” like Amazon & ebay for example who were pioneers seem to have staying power despite the naysayers. Part it will be a function of dollar devaluation and inflation but Apple will surpass $1 trillion in market cap.
you’re right about the annuity. I forgot about that.