FB: Cashin sees bubble in cloud/mobile tech names

Cashin sees bubble in cloud/mobile tech names • 3:40 PM

• "I do worry a little bit that we're beginning to hear things that are reminiscent of the 1999-2000 period—the number of hits, the number of eyeballs," says UBS' Art Cashin, suggesting a new tech bubble is afoot.
• Cashin doesn't claim all tech names are taking part - many large-caps still go for less than 15x trailing EPS and 3x sales - just some of those with strong cloud and/or mobile exposure. "We're beginning to see a case of old tech/new tech."
• Though using P/Es to value growth-stage tech firms can be tricky, given how near-term earnings are often depressed by big investments, a look at price/sales multiples makes it clear valuations for many high-growth names have soared.
• Facebook (FB), LinkedIn (LNKD), Zillow (Z) and YELP now respectively trade at 13.4x, 13.1x, 10.9x, and 14.8x 2014E sales. The story is similar for some enterprise-focused names: Workday (WDAY) and Splunk (SPLK) go for 20.7x and 17.3x FY15E (ends Jan. '15) sales, and ServiceNow (NOW), Tableau (DATA), and FireEye (FEYE) go for 11.9x, 14.4x, and 21.4x 2014E sales.
• Price/billings ratios for enterprise firms that depend heavily on cloud subscriptions are a bit lower than price/sales ratios, but are still often in the double-digit range.
• Tech ETFs: QQQ, XLK, QTEC, IGM, IYW, PTF, MTK, XLK, VGT, RYT, FXL, PSCT, TECL, ROM, TECS, REW, TDIV.

Read comments

FB price at time of publication: $54.22. Check FB price now »

Get Seeking Alpha notifications with our iPhone App | Android App | iPad App

Focus Articles on FB

• Facebook: Long-Term Prospects Strengthened By Niche Social Sites by Lennox Yieke
• Will Facebook's Earnings Catch Up To Its Valuation? by Adrian McCarroll
• Can Facebook Replace Google As The King Of Tech? by Douglas Ehrman

Press Releases on FB

• Facebook to Announce Third Quarter 2013 Results (PR Newswire)
• Technology leaders launch partnership to make internet access available to all (PR Newswire)
• Facebook to Participate in the Pacific Crest Global Technology Leadership Forum (PR Newswire)

Related Articles on FB

• The Young And Restless Retirement Portfolio: A Focus On Zynga; Do Not Sell Before Or After The Earnings Report by Regarded Solutions
• Hedge Fund Andor Capital's Newest Favorite Plays Are Out by Insider Monkey
• eBay - No Reason To Celebrate This Holiday Season, As Competition Will Intensify by The Value Investor

StockTalk on FB: FB StockTalk | Twitter FB | Twitter $FB | FB Instablogs

Recent Market Alerts on FB: All currents | Earnings | Dividends | M&A | On the move

Transcripts on FB

• Facebook Inc. (FB) CEO Discusses Q2 2013 Results - Earnings Call Transcript
• Facebook Inc (FB) Management Discusses Q2 2013 Results (Webcast) by SA Transcripts
• Facebook's CEO Discusses Q1 2013 Results - Earnings Call Transcript

---

Why are you receiving this? You subscribed to real-time Market Currents alerts at Seeking Alpha.
If this email was forwarded to you and you wish to subscribe to this email, click here.

Manage your emails:
Get alerts on additional tickers and manage all your email alert choices here
I'm getting too many emails: manage your email alert choices
I'm no longer following FB: unsubscribe from all FB email alerts
This type of alert isn't helpful to me: unsubscribe from Market Currents (breaking news) alerts on FB

To ensure you receive these emails in the future, please add account@seekingalpha.com to your address book, contacts or list of safe senders.

Prices in this email are BATS Last Sale quotes.

Sent by Seeking Alpha, 345 7th Ave. Suite 1400 New York, NY 10001