Is there a ‘tech bubble’ forming? [Infographic]

Depending on when you start counting, social media sites have been the world’s favourite shiny new toy for almost a decade now.

Today, valuations of these businesses are not serious until they have a billion or so pricetag attached to them. So what is driving these astronomical figures?

Technology commentator Tom Foremski doesn’t agree that a bubble is forming just yet, but he doesn’t rule out the possibility.

As Shakespeare wrote and Foremski quotes: “Double, double toil and trouble; Fire burn, and cauldron bubble.” Even the guru of the markets, Warren Buffett, has expressed his concerns about recent valuations in the sector.

GPlus, “a community where the world’s most active and influential professionals, academics and entrepreneurs connect” came up with this infographic to explore this very question.

Looking at the historical milestones of key social media and social networking sites individually, the infographic asks if we are in a time where investors are buying users rather than revenue?

In other words, is there anything solid behind the hype driving these figures?

Look at the figures and decide for yourself.



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