Robert Chirwa @Robert_Chirwa: Do you think the Facebook IPO is analogous to to the ’90′s netscape IPO i.e. a major event that set off of the 90′s tech boom
ANSWER:
Big difference between Facebook IPO and Netscape IPO: $2bb in extra cash flow. Another big difference: 800 mm users versus a few million users. Another big difference: Amazon, Google, Ebay, Priceline, Apple, have over hundred billion in profits from the Internet.Facebook is like a mini-Internet. It’s a scrubbed-clean Internet. So take the value of all of the internet companies and add them together. Ultimately that will be Facebook’s value.
Guess what! There never was a Bubble 1.0. It ALL HAPPENED. The Internet wasn’t a scam after all. It’s just that the public wasn’t used to invested how a venture capitalist invests and so, in despair and anger, called it a “bubble”. There never was an Internet bubble.