Ahh yes, the Valley. The place were miracles (and disasters) happen. I'm inspired by Silicon Valley because of it's ingenuity, creativity, passion, energy and technology. Apple. Twitter. Facebook. Skype. Google. Salesforce. Netflix. My goal is to receive a journalist pass and visit the offices of each of the above businesses. My gut tells me the enthusiasm I would leave with would be enough to carry me through a year back in San Diego - where truthfully very few people seem to work. I believe this, because I believe in their products and their cultures. They inspire me.
Then there are the others. Zynga. Pandora (worth $2.8 billion, really?). LinkedIn (worth $8.9 billion, really again). Have you ever been on LinkedIn?It sucks. And for it to be worth almost $9 billion dollars shows what a joke our economy is currently. It is rumored Zynga will be going public soon and be worth $20 billion. For FarmVille, FrontierVille, CityVille, LoserVille, TechBubbleVille and Mafia Wars. OK, so I added LoserVille and TechBubbleVille, but really? $20 billion for a company who makes games that are not even that cool?
Larry Ellison, CEO of Oracle, drives a $1.6 million Bugatti. Hewlett-Packard just paid a $13.2 million severance package to it's former CEO and then gave $13 million to it's new CEO. In fact, since 2007, HP has given it's 4 CEOs $59 million. And yes, they have had 4 CEOs during that time. This is what is wrong with Silicon Valley, heck, currently this is what's wrong with America. (That and banks charging us money to use our debit cards. And institutions being bailed out by the government). For every legit business, you have one that is over-hyped and over-done and it makes billions. Why? Because of greed. Remember, what goes up must come down. And crashing down it will. Or in the case of the Valley, the bubble is sure to burst. Again.
It's sad to me because there is such potential, especially with all of the businesses I listed at the beginning of this article. I'd like to invest in them. Infact, I have cash to do it. The risk of blowing up is too great for me, because when this bubble bursts, the good companies (along with beautiful Silicon Valley) are going with it.
This article was written with research done from Fortune Magazine's Tech Bubble 2.0 and Yahoo Finance's Daily Ticker.