Is Facebook floating on a tech bubble?

Sunday, 5 February 2012

Older investors could be forgiven for having a sense of de ja vu on hearing the news that Facebook is expected to float at an estimated value of $100bn (£64bn), roughly 30 times its annual revenues. The valuation of this most high-profile of social networks sends thoughts back to the late 1990s when investors worldwide stampeded into dotcom shares only for prices to go pop almost overnight.

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