[ireadzalot]

What do you say to the fact that Skype just sold for $8.5 billion when it's income is only about $400 million? And there is Color that is valued at $100 million even though its product is in almost-beta? Anyone who has watched the tech. industry for the past few years could notice that the way valuation of tech. companies are going up, it is alarming and exude "exuberance".

(Figures mentioned above are from the original article).

[18pfsmt]

Consumer focused companies are barely ever valued correctly, and it is the reason to invest in mature stocks with predictable incomes. Consumers are simply too finicky, and revenue is just too erratic. Today, I bought tech cominco(TCK), and later hypercom(HYC). I already have sell orders in, and we'll see how it goes (as an example).

[rbranson]

These are just potentially poor decisions made by people with lots of money. Tech startups are inherently risky -- many more succeed than fail -- even if they are well funded. It is a fundamentally different equation than starting a bagel shop or a car wash.

[olauzon]

I assume you meant many more fail than succeed?