Comment by bombcar
11 days ago
dotcom bubble had tons of activity, too.
it was making money off those idea at the valuations expected that was problem.
the Internet really did revolutionize things, in substantial ways, but not to the tune of millions of dollars for pets.com
>dotcom bubble had tons of activity, too.
The difference now is that this is all (or mostly) idle cash being invested. The massive warchests built up by FAANG over the last decade are finally being deployed meaningfully rather than sitting in bonds or buying back stock. Much different scenario than companies with non-viable business models going IPO on a wish and a dream.
It's a question of how far the contagion goes - the Dotcom bubble trashed the NASDAQ and rumbled the world a bit, but the "big stocks" weren't directly involved or affected much; the subprime mortgage bubble shook the very foundations of the banking world.
Will the contagion be limited to a few companies, or will the S&P crumble under the bubble's collapse?
in the meantime USA and all the world is going actually all-in AI..