Tang June: A new round of internet bubbles is going to break

November 8, the famous American social networking site Twitter (TWTR). NY, which was officially listed on the NYSE, Rose 73% in the opening and closed at $31.2 billion. November 2, China online travel service company where to go to the net (Qunr. NQ in the US Nasdaq, the first day of the IPO than the 15 U.S. dollars in the issuance price rose about 89%, the highest rise reached 133%, the market value of up to 3.7 billion U.S. dollars. The "madness" of these internet companies has given us a warning: The new dotcom bubble is on the verge of bursting.

P/E is an important indicator of bubbles, and Facebook, the social platform of the same industry as Twitter. NQ) has a P/e ratio of 44 times times, Linkedin (LNKD). NY) is 97 times times more than the traditional industry also includes the internet giant Google 20 times times the price-earnings ratio, Facebook and LinkedIn are bubbles, in the loss of Twitter, but also a big bubble.

America's Internet companies are crazy, and Chinese internet companies are Ctrip, CTRP. NQ, which has a price-earnings ratio of around 60 times, has a market value of $6.7 billion trillion, with revenues of more than $700 million in 2012 and more than $100 million in profits. And where to go in 2012, the operating income was only 500 million yuan, the profit loss was 91.1 million yuan, but the market value was as high as 3.7 billion dollars. Ctrip is already a bubble, where it is more of a bubble madness.

Also in the domestic a-share market, Internet concept stocks are also going crazy. The hand tour plate has risen about 38% since July this year. Three of listed companies ' palm Technology (300315.SZ), Zhong Qing bao (300052.SZ) and northern latitude Communications (002148.SZ) of the P/E ratio at 160 times times, 220 times times and 80 times times.

See such a hot Internet wave, I do not know how many people will think of this crisis, is the so-called internet bubble. When the first wave of dotcom bubbles burst in March 2000, the Nasdaq Composite index, which was dominated by technology stocks, broke through 5,000 points, creating the highest level ever, 1 time times more than the previous year. At that time, Microsoft (MSFT. NQ's market capitalisation peaked at $ more than 600 billion trillion at the end of 1999, at 83 times times earnings, Cisco CSCO. NQ's market capitalisation reached $ more than 500 billion trillion in 2000, at a price-earnings ratio of 200 times times higher.

The bubble soon burst, and in just 18 months the Nasdaq index plunged 78% to its lowest level in six. That year, the United States had 210 ". com" Companies closed down, billions dollar assets in Ashes. Only 10 of the 40 companies included in the March 2000 Dow Jones Internet index survived.

The surviving Internet companies have also been hit hard. After the bubble burst, Microsoft's share price slipped by nearly 63% and Cisco's share price shrank by 85%, YHOO. NQ 2001 's market capitalisation fell to $9.7 billion from $93.7 billion trillion.

The development of the Internet has a history, is gradually becoming the indispensable "traditional" industry in our life, so we can no longer just play the concept as it was. We need more and better business models, good revenue expectations, and profit protection. However, many Internet companies are unable to meet these basic requirements, many enterprises in order to seize the market, or in order to accelerate the development, often only to ensure that revenue can not achieve profitability. A listed company without profitability, but also a high valuation, this is the stock market bubble.

So investors should be cautious, and now the high P/E ratio of Internet-listed companies gives us a big signal: the Internet has a big bubble! The bubble will finally burst.

A new round of internet bubbles has arrived, and the time has come to burst!