Here are five overvalued tech companies that may lead us to the next dotcom bubble crash
1. Netflix
Though Netflix has 99 million users, the business is on pace to post a record loss this year. In fact, the company hasn’t seen a positive free cash flow since 2011, even though stock prices are going up.
2. Twitter
Mid 2015, Twitter saw its share collapse. Ever since the company has been struggling to keep its head above water. In 2017 alone, its share value depleted by eight percent, noted Profit Confidential. With its stock plummeting further down and newer and flashier social media companies taking over the scene, CEO Jack Dorsey recently put $7.0 million of his own money into Twitter stock.
3. SNAP
On the first day it was publicly traded, SNAP stocks gained over 40 percent. Since that day the company has seen its revenue drop by 11 percent, which demonstrates that investors were buying based on hype, not the product, noted Profit Confidential.
There are a few reasons why experts believe SNAP stocks are overvalued. For starters, the technology is not proprietary and can easily be replicated. The Instagram stories feature, similar to SNAP, is already used by more than 200 million people compared to 165 million using SNAP, reported Seeking Alpha. With the competition being too strong and the company not make nearly enough money, it may be on the brink of a collapse.
4. Google
Though Google still dominates digital advertising, according to one Wall Street analyst its unchallenged reign might be coming to an end, reported CNBC. Speaking to CNBC, James Dix, a security analyst at Wedbush Securities, explained that products like Amazon Alexa and digital payments like Apple Pay are likely to disrupt the advertising industry and provide new methods for consumers to spend their money, which will possibly impact Google’s hallmark advertising business.
5. Facebook
According to News Max, Facebook isn’t just a sinkhole of lost productivity and low-grade self-indulgent entertainment, it is also a colossal valuation hoax. In the past several years, Facebook has generated huge amounts of revenue from advertising. Experts, however, believe we are at a plateau. They do not expect the digital advertising share to gain more than a point or so per year going forward.
http://www.naturalnews.com/2017-06-02-five-tech-stocks-that-are-ridiculously-overvalued-and-will-implode-in-the-next-dot-com-bubble-crash.html
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