Business chart with a rocket going up

Dot com hysteria supposedly peaked in 1999.  Sixteen years later, crazy valuations are back.  Amazon rival Jet.com opens for business tomorrow, already worth $600 million and possibly $3 billion by year end!  Are we reaching absurd market values again?  Valuing a company with virtually no sales today at $600 million (and possibly $3 billion by year end!) is beginning to feel a bit optimistic.  By contrast, Cracker Barrel is worth just over $3 billion and has almost $2.5 billion in revenues.

We are not suggesting that Jet.com is a bad business model but we do caution you not to get too caught up in the lofty valuations we are currently seeing.  After moving up 85% in 1999, the NASDAQ dropped over 60% in the next three years and took 15 years to get back to its 1999 high.  So try not to get too caught up in the hysteria!

Recent Posts

Happy Veterans Day-A Tribute to My Grandfather

On Veteran's Day, I am reminded of the life of my maternal grandfather, Joesph Thomas Dickerson. At age 17, so anxious was he to defend his country during WW I that he fibbed about his age and enlisted.  By age 18, he had become a regimental sargent major, the highest...

read more
What Does President Trump Mean For Investors?

What Does President Trump Mean For Investors?

How political parties affect the markets and the economy Now that the 2016 presidential election is over and we can refer to Donald Trump as President Trump, it’s time to examine some additional questions. More specifically, how will President Trump affect markets and...

read more

Pin It on Pinterest