Mark Cuban: We're in a Tech Bubble—and It's Worse Than 2000

Discussion in 'The Howard Stern Show' started by rory, Mar 6, 2015.

  1. rory

    rory Well-Known Member

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    Dallas Mavericks owner Mark Cuban knows a thing or two about tech booms. He made his fortune in the dot-com explosion of the late 1990s, founding and then selling Broadcast.com for more than $5 billion. By doing so, he also avoided the great tech bust that followed the boom. As a result, he's remained a billionaire, and gone to become a championship sports team owner, a TV star, and a powerful investor.

    Today, Cuban thinks the bubble has returned in a far more dangerous way. In a post on his blog Wednesday evening, Cuban warned against the current mania of investment in apps and other smaller tech firms, writing "If we thought it was stupid to invest in public internet websites that had no chance of succeeding back then, it’s worse today."

    The crux of his argument: While the tech bubble of 2000 was essentially a public stock bubble, today's bubble is in the private investment realm, leaving those who are in too deep no way to escape. Thousands of angel investors have sunk large sums into private companies, but have no mechanism to liquidate their investments if there's trouble. They can't sell their position, even if they realize it was a mistake.

    Here's a key section of his post (emphasis his):

    I have absolutely not doubt in my mind that most of these individual Angels and crowd funders are currently under water in their investments. Absolutely none. I say most. The percentage could be higher

    Why ?

    Because there is ZERO liquidity for any of those investments. None. Zero. Zip.

    [...]

    The only thing worse than a market with collapsing valuations is a market with no valuations and no liquidity.

    If stock in a company is worth what somebody will pay for it, what is the stock of a company worth when there is no place to sell it ?

    http://finance.yahoo.com/news/mark-cuban-were-tech-bubble-110539391.html
     
  2. scoobyla

    scoobyla Well-Known Member

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    more importantly , whats the stuff on the table
     
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  3. R.P. McMurphy

    R.P. McMurphy Well-Known Member

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    ...so theres been a glut of investors buying into every app that came down the road hoping they could sell it to mark zukerberg. thats the chance you take with investing do we really need mark cuban to tell us that?
     
  4. reno

    reno VIP Extreme Gold

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    Glad I keep my money in strong companies like Enron.
     
  5. wife is a whore

    wife is a whore Stripped of POTY for butthurting staff VIP

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    Stewart's Root Beer and either a corndog or burrito.
     
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  6. Nemo

    Nemo Beer Can Thick Gold

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    2000 tech bubble is why he is a billionaire!
    :lol:
     
  7. wife is a whore

    wife is a whore Stripped of POTY for butthurting staff VIP

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    I think his point is these dudes aren't going to be able to dump their shit investments on schmucks when the bottom falls out. There will be no dead cat bounce, like when a stock plummets. All or nothing propostions.
     
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  8. TallTyrion

    TallTyrion Triggered like a mofo VIP

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    My head has been shaking on this for a couple of years now.

    This is a good find @rory
     
  9. Calloused Shins

    Calloused Shins Well-Known Member

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    Ya... Broadcast.com come was a flop of epic proportions. I'm surprised yahoo's still around after all their mistakes
     
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  10. BringBackJackie

    BringBackJackie Well-Known Member Banned User

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    So Uber's $40 Billion valuation is excessive?
     
  11. TallTyrion

    TallTyrion Triggered like a mofo VIP

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    LOL

    Wait until people take a dump holding on to FB and Google.
     
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  12. Droog

    Droog Well-Known Member VIP

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    This. Regular investing doesn't get their dicks hard. They're looking for that home run. Fuck 'em. At least the money is being put into the economy.
     
  13. TallTyrion

    TallTyrion Triggered like a mofo VIP

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    the average of dingers or even singles is waaaaaaay below the mendoza line.
    I wish these whales would understand that this game is rigged.
     
  14. BringBackJackie

    BringBackJackie Well-Known Member Banned User

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    Snapchat's valuation is absurd as well.
     
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  15. TallTyrion

    TallTyrion Triggered like a mofo VIP

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    all of these things....
     
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  16. Nemo

    Nemo Beer Can Thick Gold

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    sell
    sell
    sell
     
  17. BringBackJackie

    BringBackJackie Well-Known Member Banned User

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    The VCs and "angel investors" are gonna be fucked if the public doesn't bail them out. That said, hedge fund manners routinely underperform the S&P index and idiots keep funneling money over to them
     
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  18. R.P. McMurphy

    R.P. McMurphy Well-Known Member

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    ...but what im saying is that risk was there when they went in. the day they bought in there was never any product to liquidate. i dont disagree with what hes saying but even in a hot market investing in an app is high risk. otoh the u.s. patent office shut down forever somewhere between 1899 and 1901 because as far as they were concerned there was nothing left to invent.

    buying tech stock is no different than buying gold with an investment firm who holds the gold for you and in return gives you a gold stock certificate. now there are a lot of very rich people who buy gold this way but if youre going to sell gold to me youre going to have to deliver gold and i'll worry about how to store it. if you tally it all up more gold has been sold than there is available on the planet. theres a sucker born every minute.
     
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  19. FSFN

    FSFN Well-Known Member

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    So an app that can hire supermodel Kate Upton for their commercials is a bad thing?
     
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  20. Droog

    Droog Well-Known Member VIP

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    We watch Shark Tank all the time, and it's shocking how many people invest a ton of money into tech just because they like the idea. The sharks are always laughing when they ask how much is already invested in a company and the people quote a few million bucks. Tech changes so quickly that what seems like the next great thing today is tomorrow's afterthought. Development costs are pretty high. They're all hoping that a giant company will buy them up quickly, but that's a rarity.
     
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