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Technology & Innovation

Another Technology Bubble?

Whether Goldman Sachs’ $450 million investment in Facebook will create another technology bubble depends on how and when emerging tech companies go public.
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It’s been over a decade since Time Warner and America Online merged in a $180-billion deal, marking the peak of the Internet bubble and the beginning of a long drought for technology stocks—a drought that has arguably been broken only by Apple and Google. Now Facebook seems to be taking the lead in the next wave of tech-stock enthusiasm, with Goldman Sachs reportedly investing $450 million in the social network, giving the company a theoretical market valuation of $50 billion and positioning it for what seems like an inevitable IPO. That may be good for Facebook and Goldman, but will it be good for investors?

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