is tech in a bubble...or is this "the new normal"

Chris Dixon asked....(along with many others)

Is it a tech bubble?
Every week a “we are in a tech bubble” article seems to come out in a major newspaper or blog. People who argue we aren’t in a bubble are casually dismissed as promoting their own interests.



Fred Wilson replied
Zynga trades at something like 13x pre-tax cash flow when you back out the $1.5bn of cash they have. that certainly doesn't seem like a bubble valuation either.

i do think there is more money sloshing around the tech/internet/mobile sector now than there has ever been. and that is impacting valuations across the board.

the question is if this is temporary or the "new normal". i guess we will find out




I like the "new normal" reference.

I guess this is what makes the game of life interesting, at most times, everyone is learning the same thing as you playing the same "roll of the dice" as you.

The one fundamental that has changed since the last bubble is people dont question "should i pull out my credit card and purchase' online anymore (though most times its just a button click for more Zynga tchotchke or an itunes purchase), maybe that explains the extra cash sloshing around....