I haven’t had a lot of time to look at stocks recently, so with the markets hitting all time highs I thought I’d do a post about some of the ludicrous valuations in the market today, and cap it off with one extraordinary story I read in the news.
Anyone that keeps tracking of whats going on in the market will know there is currently a lot of hype around social networking websites that reminds one of the dotcom IPO’s back in the 90s. Facebook for one was offered last year for a whopping 100x earnings. Any value investor will have avoided that one, and the subsequent 50% drop that happened in the next few days. It’s strange how the market can go from loving a stock, to hysterical paranoia about mobile revenue and completely change its mind. Early investors can breathe a sigh of relief now however, Facebook is now back over its IPO price.