The past seven days have been historic for the tech industry.
On July 26, Facebook lost more market value in a single day than any other publicly traded US company ever. This week, Apple is poised to become the world’s first trillion dollar company. Regardless of whether you think the tech industry is headed for boom or bust, all you have to do is sleep on it, and the market might change your mind.
The gyrations remind Silicon Valley of an important truth: Wall Street doesn’t care about how much money a company has made as much as how much money it will make. Just ask Twitter, which announced its third straight quarter of profitability and subsequently lost 15% of its value overnight.
There seem to be some holes in the tech bubble. We’ll see if it can continue to rise.