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I'm not entirely sure if I agree with the author that we are in a bubble. Many of the big companies in the valley such as Google, Apple, Facebook, Amazon, etc ... are flush with cash. The fact that they are buying smaller companies for a lot of money a bubble it does not make. The share prices for Apple and Google at the moment may be very high but the share prices do represent revenue. Look at Facebooks deal with Instagram, it was $300 million cash and $700 million in options. That is a huge difference from an entirely cash deal.