Stock market today looks like the dot-com bubble, says legendary tech investor Bill Gurley
The technology sector’s strong run since its March lows resembles the 1999 tech boom that preceded the dot-com bubble burst, said Bill Gurley, one of Silicon Valley’s biggest venture capitalists.
“There is certainly what I would call a highly speculative nature to the markets today, a willingness to take on risks, a willingness to get excited about projects that may be five or 10 years in the future, that we haven’t seen since the ‘99-time frame,” Gurley told CNBC.
“I really can’t speculate or know exactly what it was, or the confluence of events that led to that, but we are living in a more speculative technology market for sure,” he added.
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Similar concerns have been voiced by other investors like billionaire Stanley Druckenmiller who said in September that the market was in a “raging mania.” Another famed economist, David Rosenberg, pointed out that the cloud-platform Snowflake’s ballooning by as much as 165 percent on its IPO day, reminded him of a “frenzy that took place in the dot-com bubble.”
Last month, Barclays said in a note that stock valuations were at their 2000 peaks, and downgraded the FANMAG sector (Facebook, Amazon, Netflix, Microsoft, Apple and Alphabet/Google) to market weight.
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