Lofty valuations for tech companies are leading the industry into bubble territory not seen since the late 1990s, experts have claimed. The warning comes after Airbnb shares more than doubled in their trading debut on Thursday, propelling the home-rental company to about a $100bn (£75.7bn) valuation in one of the biggest first-day rallies on record. In the same week, food delivery company Doordash's market debut saw its shares soar to $189 in New York on Wednesday after being priced at just $102 a day earlier. The surge valued the company at $72bn, twice the market cap of Barclays. Meanwhile Snowflake, a cloud storage computing firm which listed earlier this year, saw its valuation surge to $116bn, with its shares rising by 242pc since it floated. "This speaks to a market that has clearly lost all sense of perspective," said Michael Hewson, an analyst at CMC Markets. "I am staying well clear until there is some rationality," added Richard Windsor, founder of research company Radio Free Mobile. "Valuations are being ignored and instead being supported by hype, speculation and blue sky thinking." According to data compiled by University of Florida Professor Jay Ritter , Airbnb was the 19th company in 2020 to double… Read full this story
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