Tech bubbles are bursting all over the place

Re:Tech bubbles are bursting all over the place by ericmay on Friday May 13, 2022 @12:22PM (#31369545)

I think there's some panic, yea, but the P/E doesn't tell the whole story. Take Facebook or maybe Google (just to pick on, others like Apple have their own headwinds to face) - how does advertising fair in a recession? Maybe the P/Es have retracted to look appealing, but here in about 2 years when ad revenue is down 30% those same P/Es look expensive.

Personally I think if you are investing with a longer-term horizon the next few years don't matter and if you like to buy individual stocks now is as good of a time as any.

Not a financial advisor and not financial advice.

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Re:Tech bubbles are bursting all over the place by r0m4n0 on Friday May 13, 2022 @12:34PM (#31369699)

Google has been around for 20 years so we can see what happened to advertising revenue during the last recession.

https://www.statista.com/statistics/266249/advertising-reven...

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Re:Tech bubbles are bursting all over the place by ericmay on Friday May 13, 2022 @12:54PM (#31369965)

Which is definitely a piece of data to look at while making an investment decision.

One thing I'd recommend is asking how was Google as a company different in say, 2008 where revenues increased despite the recession compared to now.

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Re:Tech bubbles are bursting all over the place by disgruntledphd2 on Saturday May 14, 2022 @06:02AM (#31376452)

Google was the cheap competitor to TV last recession. That's definitely not true anymore.

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Re:Tech bubbles are bursting all over the place by megaman821 on Friday May 13, 2022 @12:35PM (#31369716)

What about a recession would cause FB or Google to leave the advertising business, and not have some the largest advertising revenue whenever the recession is over? It is more of a choice can your money be invested somewhere better in the short-term and then hop back on to FB and Google before they get too expensive.

It is probably the same for all large tech companies. I don't see any titans falling in the next few years.

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Re:Tech bubbles are bursting all over the place by ericmay on Friday May 13, 2022 @12:53PM (#31369943)

> What about a recession would cause FB or Google to leave the advertising business, and not have some the largest advertising revenue whenever the recession is over?

I'm not suggesting they would leave the advertising business, I'm suggesting revenues could be lower as advertisers cut their spend, which would drop Google/FB revenue and make the current 12 PE more like a 25 during a recession. I guess, you can't just look at P/E ratios. They don't tell you too much.

> I don't see any titans falling in the next few years.

Well, they've fallen quite a bit since January. Haven't they?

I don't see anyone going bankrupt or anything, so if that's what you mean then yea sure I agree - hence I think they're attractive to buy now as well.

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Re:Tech bubbles are bursting all over the place by prepend on Friday May 13, 2022 @12:57PM (#31370011)

They wouldn’t leave the as industry, but their revenue would suffer greatly.

A decent percentage of Google ad spend is waste/useless/whatever. So during a recession companies are probably tightening their ad spend and getting more precise.

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