Right now all the talk is about big tech IPOs – particularly with Alibaba completing the biggest IPO ever and companies like Uber moving towards $40 billion valuations.
Technology moves so fast that all it takes is an idea to disrupt their business model. Yahoo! purchased Geocities in January 1999 for $3.57 billion and now Geocities does not exist. Why? Because the business model got outdated very fast – platforms such as WordPress allowed people to build sites without the embedded advertising and hosting got way cheaper. This all happened over the course of a few years, and it was a game changer.
Do we expect that companies like Facebook, Snapchat, Uber, Lyft, Amazon, and Alibaba to be around in the same capacity in 10 years? What will their maturity look like, especially as technology continues to change? How will this affect valuations for more speculative IPOs?
Are we in the middle of another bubble? Check out this infographic, brought to you by Who Is Hosting This, on all the new tech IPOs, and decide for yourself whether investors are being deluded like the dot-com investors of the past.