.Innovative IT lives in a make believe world with its business largely crystal -ball led.The recent $19 bln buy out of Whatsapp will remain highly mystical ,the transaction being largely on stocks and far less in cash ,till we get to see it either as a classic bubble or a case of brilliant business insight .As a disturbing pointer to the former ,we had steep erosion in the prices of some internet and social media stocks recently ,pulling down Nasdaq Composite Index by 10 per cent -Twitter stock that gained 70% on listing day fell 46 % from its peak even as Facebook and LinkedIn ,followed suit and back home , Justdial and Info Edge tumbled sharply.The Uber story is hopefully an illustration of the latter. The rationale of its valuation at $18.2 bn can be argued separately, but unlike other esoteric App initiatives,Uber spins out a business of moving men and material and generates real money that adds to the growth of the middle income group.One would rather have an affluent cabbie enabled by Uber than an idle one trading his woes on Whatsapp with a fellow sufferer. Amidst increasing fears that California could well be hosting its second gold rush post 1858, this time in the IT Shangri La of Silicon Valley , Uber and its ilk ought to be a welcome relief
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