Skip to main content

Marc Andreessen: There is no tech bubble

Marc-AndreessenThese days, many tech junkies and stock watchers will tell you that the multi-billion dollar valuations of companies like Facebook, LinkedIn and Groupon prove there’s a new technology bubble currently being filled with the hot air of speculators and investors hoping to get rich on the “next big thing” out of Silicon Valley. But that’s just not so — at least according to superstar venture capitalist Marc Andreessen.

During his featured interview at All Things Digital’s D9 Conference in Rancho Palos Verdes, California, on Wednesday, Andreessen — co-founder of VC firm Andreessen Horowitz, and founder of Netscape — shot down the notion that a tech bubble exists, saying that it can’t be a bubble because people are calling it a bubble.

“If a very large number of people think there’s a bubble, that makes us think there isn’t a bubble because a key characteristic of a bubble is that everyone thinks there is a bubble,” Andreessen said. He added that the Internet bubble of the 1990s was defined by a ubiquitous “we can’t loose” mentality that fueled unwise investments. “If everybody’s upset, it’s a good sign,” he added. “…I hope there are lots of bubble stories.”

Andreessen said that he has analyzed the price-to-equity ratios of some of the biggest technology companies, including Apple, Google, Cisco and Microsoft, and found that, since they are mostly trading in single-digit rations, it proves that investors are still wary about technology stocks due to the collapse of the previous bubble.

“What that tells me is that the public market hates technology,” he said.

When pressed on the success of LinkedIn, of which Andreessen is an angle investor, Andreessen assured that, despite the 90+ percentage jump in LinkedIn’s IPO price, the company was not overvalued. And because LinkedIn represents only a small percentage of the technology companies out there, it’s success on the open market is not indicative of a bubble.

“[LinkedIn is] only one company, it only just went public, it’s a thin float, the public market is starved for growth, you can’t even borrow shares to sell LinkedIn short yet,” Andreessen said. Plus, he said, “LinkedIn is an important company doing an important thing.”

Topics
Andrew Couts
Former Digital Trends Contributor
Features Editor for Digital Trends, Andrew Couts covers a wide swath of consumer technology topics, with particular focus on…
Quest Pro 2: What we know about Meta’s next premium VR headset
From a side view, you can see how glasses can be worn along with a Quest Pro.

While Meta’s Quest Pro is one of the best VR headsets available, it never reached its full potential as a laptop replacement for spatial computing. Meta hasn’t given up on making a work-centric solution, and rumors suggest a Meta Quest Pro 2 is still in development. Here’s what we know so far about Meta's answer to Apple's Vision Pro.
Meta Quest Pro 2 release date speculation
It’s difficult to make a solid prediction on when Meta will launch the Quest Pro 2. Meta CTO Andrew “Boz” Bosworth made it clear in an Instagram AMA that Meta is continually prototyping new VR headsets to find out what’s possible with current technology. That gives Meta more flexibility than manufacturers that research for years before doing hardware testing.

If Meta is satisfied with the performance of the Snapdragon XR2+ Gen 2 and LG can deliver enough micro-OLED displays, the Quest Pro 2 could arrive as early as this October at Meta Connect 2024.

Read more
Does RAM speed matter for PC performance?
Installing RAM sticks in a motherboard.

RAM is one of the primary components in a PC, and it's important that you have at least a certain amount of RAM depending on what you want to do with your PC. However, there are more things to RAM than just capacity: Frequency and latency are important considerations, too.

The question of whether RAM speed matters is especially important now that we have two generations of RAM available, both DDR4 and DDR5 -- and they have vastly different speeds. The official maximum clock speed for DDR4 was 3200MHz, while DDR5 starts at 4800MHz, an increase of 50%; however, you'll easily find RAM kits reaching above 7000MHz. Although latency significantly went up, from CL14 on most 3200MHz DDR4 kits to CL40 on most 4800MHz DDR5 kits, DDR5 is still found to be faster.

Read more
The 6 best 2-in-1 laptops for drawing in 2024
Portal RTX running on the Surface Laptop Studio 2.

Whether you're a seasoned professional or enjoy drawing as a hobby, investing in a 2-in-1 laptop is a great idea for all sorts of artists. Drawing on a laptop makes it easy to quickly share your creation with others, which is especially useful if you're doing it as a professional–negating the need to upload your pen-and-paper sketch to the computer before sending it to a client. Moreover, working on a laptop lets you undo mistakes, zoom in to better handle small details, and quickly change utensils.

There are a lot of perks to drawing on a 2-in-1 laptop, but not all of them are great for creators. Some have unresponsive displays that can't register all your movements, while others might have a lackluster resolution or color spectrum that turns most images into a muddled mess. Because of that, it can be hard figuring out which laptop is best for your needs. And if you'll be spending a good chunk of change on the laptop, you'll want to make sure you get it right.

Read more