The Second Dot Com Bubble Has Now Burst

Tyler Durden's picture

It is hard to believe that the first dot com bubble, so vivid to most semi-veteran traders, occurred over a decade ago. What is even harder to believe is that courtesy of the record liquidity bubble created by the Central Planning mafia, 2011 has already seen not only the second dot com bubble, but as the table below demonstrates, its bursting. Of all the dot com 2.0 IPO to hit the market in the past 3 months, the average return is now down 20%, but that has not prevented an underwriting syndicate comprised of the TBTFs to make billions in underwriting fees. Luckily, the fervor that previously had gripped some of the more volatile precious metals, and since spilled over into new public issues, has popped. Incremental cash will now be nearly impossible to get. To all companies that managed to take advantage of momo traders who have a memory of 15 minutes or less, congratulations. To everyone else: get in line for QE3. Wink, wink Groupon.

h/t John Lohman

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mynhair's picture

Which one is the Weiner in?

TheTmfreak's picture

Probably Adul... i mean friendfinder.

TheTmfreak's picture

Somehow I doubt he finished his 30 day free trial...

monopoly's picture

That was quick. Usually lasts a year or more. :)

Something is up here, this market is very strange acting right now. Am safe in port and staying that way.

TruthInSunshine's picture

The Winners of the New World By Jim Cramer 02/29/00 - 09:42 AM EST

You want winners? You want me to put my Cramer Berkowitz hedge fund hat on and just discuss what my fund is buying today to try to make money tomorrow and the next day and the next? You want my top 10 stocks for who is going to make it in the New World? You know what? I am going to give them to you. Right here. Right now. OK. Here goes. Write them down -- no handouts here!:


724 Solutions (SVNX), Ariba (ARBA_), Digital Island (ISLD), Exodus (EXDS), (INSP_), Inktomi (INKT), Mercury Interactive (MERQ), Sonera (SNRA), VeriSign (VRSN_) and Veritas Software (VRTS_).


We are buying some of every one of these this morning as I give this speech. We buy them every day, particularly if they are down, which, no surprise given what they do, is very rare. And we will keep doing so until this period is over -- and it is very far from ending. Heck, people are just learning these stories on Wall Street, and the more they come to learn, the more they love and own! Most of these companies don't even have earnings per share, so we won't have to be constrained by that methodology for quarters to come.

monopoly's picture

Truth, perfect, just perfect, and to think he is still walking the streets, a free man.

Blano's picture

And now he says he doesn't like Pandora because they don't make money.  Well better late than never I guess.

natty light's picture

<span style="font-weight:bold;">Bear Stearns is fine!!!</span>

Village Smithy's picture

I am finding the almost perfectly sinusoidal pattern of yesterday and today's ES interesting.

monopoly's picture

I know AAPL is not the market but for me it is always a tell.

Going Loco's picture

And AAPL's 20DMA just broke its 150DMA - a Weinstein moment if ever I saw one.

The Axe's picture

You should put AIG in there to...its in imagination world   also....  We should probaly nuke it..

The Axe's picture

You should put AIG in there to...its in imagination world   also....  We should probaly nuke it..

svendthrift's picture

That was quick. Max Keiser said it would last a few more years. The cycles are speeding up.

theMAXILOPEZpsycho's picture

The bubbles are getting smaller and smaller - there's no air left to blow them with!

A few years! lol! The last time I heard Max Keiser was pumping Bitcoin as "the currency of the revolution!"

hedgeless_horseman's picture

Q:  Does this mean that Project Playlist is fucked?

A:  Yes, Bob, we were dead after MySpace and FaceBook killed us.

Q:  Why?  We're just as good as Pandora.

A:  Exactly, Bob.

fonestar's picture

Short them all.  Let Sergey sort them out!

mynhair's picture

Totally O/T:

Hoist one for the Weiner!

May the door not hit him in the ass on the way out.

(As soon as he shuts up, that is.)

monopoly's picture

All the miners getting crushed and gold is down..... $2.00. Beyond words. 1/2 my kingdom to get the turn in miners correct.

mynhair's picture

I feel your pain greatly.  Try more HL at 6.88, if it gets there.

Edit:  ok, 6.50

qussl3's picture

My fingers are getting damn itchy, but unless BB pulls something out of his ass on the 22 or CHina goes nuts we are probably going lower.


Johnny Lawrence's picture

AAPL through the 200-day for the first time in 2 years.

hedgeless_horseman's picture

Saw that too.  I'm no technician, but looking like lots of air to 200.

Miss Expectations's picture

Does this mean that Jonathan Golub just slammed his forecasting speedster into reverse?

slow_roast's picture

I fucking love this website.  It's like you diatribe for me, to me!

buzzsaw99's picture

There are others upcoming as well. Facebook projected $100B. That's all the evidence I need.

WilliamShatner's picture

Read somewhere that Facebook lost 6 million users in America last month.

They had their chance to go IPO and let it pass by.

LinkedIn at least saw the window of opportunity closing and went for it.  Start buying puts or just short that baby, it's going to fall fast and hard.

Groupon?  Idiots should have taken the Google buyout offer.  Them turning it down reminds me of Yahoo! turning down Microsoft's buyout offer.  D'oh!


Liquid Courage's picture

OT: Hey, Bill! Was that you I saw climbing a lamp-post in Vancouver last night?

I know you were at the game 'cause they had a close-up of your manic mug on CBC. Quite the get-up.

buzzsaw99's picture

Google is worse than calpers, they'll buy anything.

WilliamShatner's picture


Except Google can't just go back to the state and request more tax payer dollars after taking a huge loss on their investments.

buzzsaw99's picture

after calpers takes a bath on their GOOG holdings they damn sure will. lolololol

monopoly's picture

Volume picking up. I have been doing this for a week or two....and I am scared.

AgShaman's picture


I remember the 1st dot com bubble wasn't that damn bad!

I actually enjoyed a decade's worth of eating Top Ramen, peanut butter and crackers, and spam sandwiches....while living in a tent in the mountains.

It builds character....and promotes the hoarding of precious metals.

Look at me now....I'm hoping to sign papers and close on Ted Kaczynski's old cabin anyday now.

Keep gamblin' "Bits-sez"....and you'll get yours as well (Party like it's 1999!)

"Smoke 'em if you got 'em"  - Bill Clinton

mynhair's picture

Pound thru 1259, you pig!

qussl3's picture

Resilient mutha isnt it.

If we do crack tmr, next tues will be VERY interesting.

XenoFrog's picture

"Most of these companies don't even have earnings per share, so we won't have to be constrained by that methodology for quarters to come."

Your kid is going to fail the state test, so if we just don't test him, he won't be a failure!



falak pema's picture

I love this post. Out of nowhere the US capital class suddenly recognises its been shitting around about its holy of holies once again : the high tech sector, once again in levitation.

Surprising that nobody saw this coming in USA. It was reported last week after around two weeks prior earlier, in french press. We are all selective in our view of things and subject to our own value systems.  

Love to hear comments on this from the experts of hi-tech. What have the Rating companies been doing in their sectorial analyses?

falak pema's picture

Well those rating companies do so much more than "fluffing" the greeks wouldn't you say..I love this selective vision of global capitalism...Lets hear your fluff on that.

"Stuffing" is more appropriate. DEEP and painful. But fluffing will have to do I guess in the US. 

GFORCE's picture

When Carlyle, Glencore and Facebook talk IPO, it's gotta be the top.