Jul 28, 2011
In these times there is still unrest in the IT company business sector as the threat of another tech bubble continues to swell to the bursting point, but what does this all really mean? The only way to make sense of it is by studying trends and other information that can make data more clear, such as the data in the following infographic about the over valued top three social media it companies in the country right now. As start ups (with a small business server more than likely) these companies managed to make it to the hop of the proverbial heap of recent tech giants, and yet, there is reason to believe the bottom could still fall out. Why is this?
Well, overvaluation was mentioned above. It is the culprit in most of the failings of the industry’s biggest and brightest tech startups. When tech start ups are overvalued, meaning that before there is an IPO for the company, various financial theories and models are applied against the company in an attempt to judge with some accuracy how much its net worth might currently be, and yet the prediction falls terribly short in reality, the results can be devastating. Let’s have a look at three of the greatest tech IT company start ups in the past decade and check whether they might be a bit inflated.
