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A comment on Tech bubbles are bursting all over the place. Parent comment

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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