$19 Billion for a free messaging platform, with almost no revenue. $2 Billion for another revenue-less tech toy… Is Silicon Valley taking the piss, or do they enjoy blowing bubbles as much as a kindergartener? Ooh… bubbles.

History seems to be repeating itself, c’est la vie. Companies like Facebook are banking on their trendy new assets to incite investors to buy their company’s trendy stock at top dollar. Bold proclamations to boot, Facebook is investing in companies that have almost no revenue. With Facebook’s stock price tripling since 2012, investors are now buying at a very high premium: $101 for every dollar Facebook earns.

Facebook is not alone – there are others. The cloud-based storage company, Box, recently filed for an IPO, showing $124 million in revenue for 2013 – not bad. Pity that they spent so much on marketing that they ran at a $186 million operating loss.

To read more about the similarities between the 2000 tech bubble and what’s going down in Silicon Vally, click here.

[ Source: TheDailyBeast ]