Air has been hissing out of the technology bubble since March. This looks set to continue as investors seem to have realised they got a bit carried away, says the Wall Street Journal.
Prices and valuations in the hottest sectors have slipped – but merely from insanely to absurdly overpriced.
Twitter is still on 285 times next year’s earnings, down from over 1,000 in March. The forward price-to-earnings ratios of other social media stocks are still eye-watering too.