To Be A Tech Bubble Or Not To Be, That is the Social Media Question

LinkedIn’s IPO made tsunami-sized waves in the tech industry, spurring rumors and reports that a major tech buying bubble is about to burst. PR Daily reports that shares were trading at an astonishing 45 times the company’s revenue last week. As Groupon announces its own plans to for an IPO that would value the company at up to $20 billion, we can’t help but lend some serious credibility to analyst’s reports.

Groupon premiered in the online world offering an innovative opportunity for consumer savings on all kinds of local products and services.  Through partnerships with local merchants, the company is able to offer daily group discount deals on countless goods. Despite their popularity and success, the two-year-old company has been experiencing more losses, encouraging both Facebook and Google to consider opting in to the company.

At Blue Interactive Agency, we’ve mastered the ins and outs of interactive marketing the way Zuckerberg has online friendship, but we don’t pretend to be fluent in the language of financial trading. Lucky for us, the talented folks over at Gplus created an infographic that helps visually explain whether or not we’re “in a time when investors are buying users rather than revenue”:

It is clear that tech companies are being valued far beyond what they’re actually worth, but what implications does this have? Whether or not it seems logical, people are buying in; LinkedIn marketing is exploding in popularity. We’ll just have to wait and see how this affects the future of the tech industry.