The technology industry is moving towards frothy stocks and high wages

NetEase technology News November 4, according to the website BusinessInsider reports, there are signs that the technology industry bubble is forming, perhaps the technology industry is waiting for the collapse of the bubble as 1999. There are three main areas of evidence from BI: Technology start-ups with no income can also have billions of of billions of dollars in valuations; the loose monetary environment created by the dollar has led to a rise in Nasdaq's stock index; the high wages of technology companies are incomprehensible. The following is the main content of the article: Technology companies valuation is not rational but not good-looking income can also be overvalued, Pinterest recently received 225 million U.S. dollars in financing, the valuation has been more than 3.8 billion U.S. dollars. Of course the valuation is not the real value of the company, but it is a benchmark value for the company's future sale or listing. In fact, the valuation is 10 times times the capital that investors actually invest in the company. Of course, Pinterest is likely to become a great company in the future, and it has shown itself to be an extension of online retailing and E-commerce. But the company is rumoured to have only 9 million dollars to 45 million dollars of annual income. Maybe Pinterest still has some income, but no income can also have a super overvalued value. Snapchat (burnt after reading) has launched a new round of financing, valued at $3.6 billion trillion. The company's income is 0, and you're not wrong. The company did not generate any revenue. And it is unclear how the company can find a business model for its application. The last time I saw investors flocking to a tech company with no income or about 2000 years ago, the dotcom bust was on the eve of it. In addition, failed enterprises can still obtain financing and overvalued value. The fab.com retailer, which recently financed $165 million trillion, has received a total of $336 million in financing. The company has laid off 440 people since the flash-buy model-consumers suddenly asked to buy a daily deal-proved unworkable. So the company changed to a completely different business model, Pivot, the company turned into a gay community. We are not saying that a failed company is not a comeback, but that fab investors are too generous. Stock prices are at all-time highs. The current macroeconomic background of the United States: Interest rates are close to 0 and monetary conditions are too loose. The natural risk consciousness is much smaller when borrowers take a loan of close to 0 interest rates. Investors usually have a few choices: there is no risk or investment in risky assets with bank-guaranteed interest payments, but more returns may be paid over time. But when interest rates are zero, almost any other type of investment is better than a bank. As a result, the investment asset bubble was established and the stock index climbed. The stock market is high and we have been through five years of stock market prosperity. The people who have invested in the stock market over the past five years have become very rich, but you just have to look at the picture below of the standard and Poole 500 index and you know it's not far. In charge of 4.1 trillion dollar assets, Blackstone CEO Lauren.Westminster· D Fink says the Fed is creating a bubble market. As for the trading prices of technology companies, they are also rising. Software firms traded twice times more in the second quarter. As for the reason, because high stock prices have led large companies to hold large amounts of cash and must invest, the most obvious is Yahoo. The increase in demand and the natural rise in prices creates a vicious circle. Not only stock prices, but also high wages even though America's unemployment rate has been high, unemployment is very low in the High-tech sector. High-tech companies, led by Facebook Mark Zuckerberg, are lobbying Congress to loosen immigration rules so they can hire more foreign talent, Zuckerberg. Because they feel that the domestic High-tech talent has become too scarce, too expensive. Make the salary rise like crazy. "We're going through a deranged recruitment," says Matt Allen, a headhunter at a High-tech company. I have seen high tech give 5 years working experience to an engineer with 60,000 dollars in the entry award. The interviewer takes six to eight or more contracts, bargaining for the difference of thousands of dollars in monthly wages. Even if they sign a contract, you will receive emails before work to show that they have found a better job. "The wages of High-tech companies are accumulating bubbles. Want an example? Twitter's senior vice president, Chris Fley, received a 10 million dollar salary and reward, and he joined the company less than a year ago. This is the rise in wages in the High-tech world. Fry is not a special case, and Facebook's vice-president for engineering, Michael Norfo, received 24.4 million dollars in 2011. Some investors are beginning to suspect that the High-tech bubble has formed and is about to collapse. Atte Cashi, the business director at UBS's Financial services company, recently worried that the phenomenon he was seeing reminded him of 1999 years: "I'm a little worried that what we're starting to hear is reminiscent of things from 1999 to 2000, ' clicks ', ' eyeball economy '. ”.“ I think that if we keep to cool, then we might be safe accordingly. But, to some extent, they are doing things in a similar way from 1999 to 2000. "For an old stubborn like me, it's a warning to speculate about future earnings based on the number of users and the number of viewers." "We are at a high point," says Tim Drey Cooper, one of the most legendary High-tech investors. "Timothy Drey Cooper, the founder of Draper Fisher Jurvetson, has invested in dozens of high-tech start-ups. He has been in the tech industry since the day he appeared in Hotmail. He recently told The New Yorker magazine that he thought High-tech VCs might have reached the top of their cycle. "Every time after the Great Depression, people start a business because they don't have a job, and then all sorts of investments come along, and it seems like a recurring story that everything they encounter can turn into gold and then the capital market collapses," he said. "Of course we allDo not want the bubble to collapse is true. (John)