If we’re in a tech bubble, how come investors in Internet companies are getting cleaned out?
As this chart from Statista shows, most of the big Internet companies lost at least 25% of their value between April 30th and September 30th. The losers include Snapchat, which is still privately held, but which big investor Fidelity marked down 25% during that period.
The big exceptions are the two most dominant Internet companies, Google (now Alphabet) and Facebook, both of which gained about 14%.
This suggests that tech investors Sam Altman and Marc Andreessen may be right — we’re actually in the middle of a long tech bust. The only tech companies that are overvalued are a handful of late-stage, privately held companies that are taking their sweet time in going public, and are raising rounds that look like equity but are really structured more like debt.
SEE ALSO: Three-quarters of Snapchat’s users are millennials
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