The Height of Folly. Today marks the peak of the Dot Com bubble. The NASDAQ has doubled in a year. IPOs are popping 400% on day one. Pets.com, Webvan, eToys—these are the titans of the new economy.
The Valuation Problem: Traditional metrics like P/E are considered obsolete. 'Price to Clicks' and 'Eyeballs' are the new currency. But burn rates are accelerating, and the path to profitability is non-existent for many.
The Turn: Japan has entered a recession, and the Fed is tightening. Capital is becoming expensive just as these cash-burning machines need it most.