The know-how sector’s sturdy run since its March lows reminds Benchmark’s Invoice Gurley of the 1999 tech growth that preceded the dot-com bubble burst, the investor informed CNBC.
“There may be actually what I’d name a extremely speculative nature to the markets immediately, a willingness to tackle dangers, a willingness to get enthusiastic about initiatives that could be 5 or 10 years sooner or later, that we have not seen for the reason that ’99 time-frame,” Gurley mentioned Friday on “Squawk Alley.”
“I actually cannot speculate or know precisely what it was, or the confluence of occasions that led to that, however we live in a extra speculative know-how marketplace for positive,” added Gurley, who led the agency’s investments in corporations like GrubHub and Zillow, and was instrumental within the ouster of Uber CEO Travis Kalanick in 2017 after a collection of scandals and missteps at that firm.
Some on Wall Road have voiced their considerations that the run bears resemblance to the bubble, pumped by simple capital, market confidence and pure hypothesis, that burst in 2000. Barclays, for instance, mentioned in a note last month that inventory valuations have been at their 2000 peaks, and downgraded the FANMAG sector (Facebook, Amazon, Netflix, Microsoft, Apple and Alphabet/Google) to market weight.