Eric Schmidt: You Don’t Know It’s A Bubble Until The Bubble Ends
Earlier this week, Google Executive Chairman Eric Schmidt gave an over 70 minute long talk to press at the Sun Valley conference here in Idaho. Towards the end of the talk, a reporter asked the former Google CEO whether he, like many in the media world, thinks we are presently in a tech bubble and what Google’s $1.67 billion 2004 IPO at a $23 billion valuation (Google’s current valuation is 171.43 billion) means in light of today’s IPO valuations.
“Oh we were underpriced,” Schmidt joked, before remarking that he didn’t actually know whether or not we are presently in a bubble.
“On the general question of bubble, in the first place you don’t know it’s a bubble until the bubble ends, by definition. The rule I set for myself 10 years ago was that if the press calls it a bubble then I’d pay attention, and let me report that the New York Times, the Wall Street Journal and the Economist have all written articles saying that it’s a bubble.
So you have a couple choices A) The revenue growth possibility on these platforms is so large that you could get the kind of revenue acceleration that justifies the valuations. B) You have a liquidity squeeze where you don’t have enough shares, and they’re artificially high.”
When a journalist pointed out that it sounded like Schmidt was “unconvinced either way,” he said that it’s difficult to know the whether valuations are fair until a significant amount of shares hit the market, usually when employee lockups expire, typically after six months, “You won’t really know the answers until 2012,” he said.
The only clear thing at the moment, Schmidt said, was that real estate values will go up. “Young people who need houses will go into areas of scarce housing resources and there will be competition for houses and housing prices will go up. So for them it’s not a bubble it’s actually a house.”
On what effect if any the seven years of market experience have had on his perspective on Google’s IPO, Schmidt said, “Google went public at a very different time, at what people thought was an unbelievably high valuation, and let me point out that we’ve never traded below our opening price.”
When pressed again by a reporter for a yes or no answer, Schmidt gave the following humble reply, ” I don’t think it’s my job to call the market. It’s a mistake for me to say what the market should think … I’m not a brilliant investor. If I were a brilliant investor then maybe I’d have some status. I’m a computer scientist.” … A computer scientist with a $7 billion net worth.
Courtesy : TechCrunch
Thanks Pankaj Sharma Blackberry User Group website : http://techcrush.in email : me@techcrush.in
Subscribe to:
Post Comments (Atom)
Popular Posts
-
We all know that we can start typing a person's name in our BlackBerry address book to locate a contact. What about when you have severa...
-
For $150 you have a few options for a shiny new Birthday present for your child; you could go the traditional route and pick up the latest...
-
What is the shortcut key to change all letters to lowercase, uppercase (all letters to capital) and first letter to capital in Microsoft...
-
Are you looking for download link Over the Air for Meterberry OTA ? http://icelzdownload.netii.net/bb/apps/meterberry2.5/ meterberry.jad ~...
-
Every so often there are sports that we want to play that aren't too easy to go out and play. One of those is Disc ...
-
Hardcore gamers are probably already familiar with the way that PlayStation 3 Sixaxis controllers can be used in tandem with their Andro...
-
So we've just barely gotten Android 4.1 – Jelly Bean on all the remaining Nexus devices, excluding the Nexus One of course. And it...
-
If you are interested in adding some extra security to your Android device, you might want to check out Google's 2-step authenticati...
-
Critical Strike Portable - Cross-platform 3D FPS MMO for Android, iOS and Web! Critical Strike Portable (CS Portable) delivers the nos...
-
ES File Explorer has been on my phone for a long time. I love using it to manipulate and move files to and from various...
Blog Archive
-
►
2013
(14)
- ► 03/31 - 04/07 (1)
- ► 01/20 - 01/27 (13)
-
►
2012
(71)
- ► 11/11 - 11/18 (2)
- ► 11/04 - 11/11 (1)
- ► 10/28 - 11/04 (3)
- ► 10/21 - 10/28 (13)
- ► 10/07 - 10/14 (8)
- ► 09/30 - 10/07 (38)
- ► 09/23 - 09/30 (6)
-
▼
2011
(59)
- ► 08/21 - 08/28 (7)
- ► 08/14 - 08/21 (1)
- ► 08/07 - 08/14 (17)
- ► 07/31 - 08/07 (23)
- ► 07/24 - 07/31 (2)
- ▼ 07/03 - 07/10 (2)
- ► 05/15 - 05/22 (1)
- ► 04/10 - 04/17 (1)
- ► 03/06 - 03/13 (2)
- ► 02/27 - 03/06 (2)
- ► 02/13 - 02/20 (1)
No comments:
Post a Comment
Please leave a comment if you find the blog/post useful.