Facebook, Twitter, And The Bubble Of 2011: Why It’s Different (TheWrap.com)

The news that Facebook raised $450 million from Goldman Sachs and $50 million from a Russian firm raised a ruckus in the financial blogosphere Monday that signaled a broad worry: Are we in the midst of a new technology bubble? The new investment puts Facebook’s valuation at $50 billion. The last time we saw companies with that kind of valuation growth was in the late 1990s, and we all know how that ended — in a burst technology economy. This time, while Facebook, Twitter, Groupon, and other digital companies are brandishing billion-dollar price tags with limited revenue streams, it isn’t the same as a decade ago.


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