There has been a lot of noise recently around the question of whether or not we are in another tech bubble, primarily I believe, because of some of the recent high valuations and high-priced acquisitions. The acquisition of Skype by Microsoft last week is only going to serve to highlight the discussion.
There are of course, strong voices on either side of the argument. After all, the definition of a bubble changes depending largely on where one stands, and where they’ve placed their bets. The reality is that contractions and expansions are going to occur. It’s part of the market making adjustments and identifying the “top” or “bottom” is always elusive. Here, The Economist takes a look at some of the ways the current state of economic affairs resembles the previous tech bubble, and some of the ways it does not.
Both articles on the subject are worth your time:
Update: WSJ dives into a specific example with Gilt: