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A comment on Federal Reserve to increase interest rates by 75 basis points for the third time. Parent comment

Re:Federal Reserve to increase interest rates by 75 basis po... by arberx on Wednesday September 21, 2022 @02:44PM (#32929528)
Since tech companies use other tech company's products this implies the tech industry is a speculative bubble.
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Re:Federal Reserve to increase interest rates by 75 basis po... by hot_gril on Wednesday September 21, 2022 @02:55PM (#32929708)
It is partially. There's some basis in reality since it's actually very profitable overall, but the investment goes beyond reality. I'm not saying you shouldn't invest in tech. It's possible this bubble never goes away.
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Re:Federal Reserve to increase interest rates by 75 basis po... by spaceman_2020 on Wednesday September 21, 2022 @03:35PM (#32930381)
Valuations are definitely in a bubble

Most of these unicorns simply can't turn a profit with their current cost structures. And even if they do, the profits will be so small that the valuations will simply not be justifiable.

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Re:Federal Reserve to increase interest rates by 75 basis po... by mym1990 on Wednesday September 21, 2022 @02:52PM (#32929661)
I'm not sure dependency implies a bubble, rather a risk. For companies like Amazon(AWS), there certainly is an element of being too big to fail because AWS and similar cloud operations provide so much of the infrastructure for other applications.

The bubble can clearly be seen by the disassociation of valuations from the underlying value, which for many new companies is nothing.

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