Is Google Creating A New Bubble?

from the not-quite-the-same,-of-course... dept

People have been going all out in the last few months trying to point out the similarities between Netscape and Google. The main focus is whether or not the Google IPO will reignite the IPO market for tech startups. While some are excited about that possibility, others are worried that this just means the start of a new bubble. Of course there are always bubbles of some sort rising as a hot area attracts too much attention. However, the big difference with a company like Google (and many of the others discussing serious IPO plans) is that they have clear business models that are working, and (in many cases) actual profits. The problem with the bubble wasn't that people were excited about new areas and driving up those stocks - but that those valuations were based on nothing.

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