Home It’s Official: There Is No Bubble

It’s Official: There Is No Bubble

Yesterday we analyzed the financials of the 7 publicly traded Internet Big Cos. There was nothing bubbly there, with an average PEG of 1.4.

So the next stop is the “middle 20”. These are publicly traded web technology stocks with a market cap over $1 billion. In our analysis below, more than half have a PEG below 1.0, which tends to signal “bargain opportunity” to investors. (caution: of course that is only a starting point for analysis, there could be some real dogs in there). Check out this chart:

So, it is official – there is no bubble in public Internet stocks. There might be in private valuations, but that is almost impossible to analyze accurately without access to hard data on late stage VC valuations.

Anecdotally, it does look like private valuations are higher than public valuations. That is a very odd reversal of normal market rules and will create problems at some stage – the shares have to be sold to somebody who will pay a higher valuation.

A reminder to participate in our weekly poll, about the top Internet companies:

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.