Tech FOMO turns to suckers’ shame – The Wall Street Journal

DUBLIN – Bubbles are a part of the life cycle of capital markets. From tulips to Bitcoin, human beings have a tendency to get out-of-control optimistic and then to crash back down to earth. One area that consistently seems to generate financial bubbles is technology. People get swept up in the excitement of the Next Big Thing and invest in the hope of exponential returns. In a way, that's rational. Tech companies have generated exponential returns on many occasions over the centuries – especially for early investors. But it's also very easy for people to get carried away and to send tech valuations too high, whether its digital currencies or meal delivery apps that are the flavour of the moment. When that happens, bubbles can have devastating ripple effects throughout the economy. Thus, it's always wise to keep a weather eye on the tech sector. In this article, The Wall Street Journal looks for evidence that things are starting to come undone in the riskier areas of today's tech boom. – Felicity Duncan

Silicon Valley's Unbridled Optimism Gets Fresh Reality Check

By Rob Copeland

(The Wall Street Journal) SAN FRANCISCO—Messaging startup Hustle projected the picture of Silicon Valley largess. The company spent millions of dollars raised from investors such as Alphabet Inc. on expensive new hires, on-tap kombucha, arcade games and a six-figure salary for its pedigreed chief executive.

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