Fortune agrees — social media bubble ahead

Ever since Goddam Sachs announced its big play for Facebook, I've been saying a new Internet/tech financial bubble was coming down the road, probably about 2015. The HuffPost/AOL merger only increased that idea in my mind.

Now Fortune magazine nods in agreement.

Examples are cited:

(R)ecent private market trading of LinkedIn puts its valuation at $3 billion or so. Do you really want to buy shares of a company that did just $18 million in sales in a recent quarter at more than 30 times those sales? Why? Because you think LinkedIn is going to be the next Facebook? Don't try to sell your shares to me.

That's seriously bubbly.

And this:

(T)he only reason that you would ever pay anything approaching the multiples that Facebook and Twitter are currently valued at is if you assume there's a greater fool waiting down the road to take those shares off your hands.

The fool .... is really driven by fantasy product ownership.

Really, just like bloggers at Examiner are driven by an online version of vanity press publishing, it's the same thing — vanity stocks.