I feel like I’m at the playground with my kids and all of their friends when someone runs up to me every three minutes and shares a breaking story about who used potty talk and who isn’t sharing his or her toys.
When I speak of bloggers talking at and not to each other, this is what I’m talking about. Someone throws a topic out there and like a nineties dot.com stock everybody buys it immediately. Few people stop to wonder if it’s a good buy or not. Most just start reporting the news and/or telling us what they think about it.
And while I’m on the topic of nineties dot.com stocks, if Yahoo does pay $30M for Digg, I am going to sell all of my tech stocks because another dot.com bust is headed our way.
Cool is good. Digg is cool. Traffic is good. Digg has a lot of traffic. To warrant a $30M price tag, however, lots and lots of revenue needs to be in the pipeline, not on the drawing board. Digg has revenue, but I’d be very surprised if anything close to a $30M price tag isn’t some combination of betting on the come (which lost us all a ton of money back in the nineties) and the greater fool theory (which is the basis of far too much of our markets at this point).
When I see these sites, even great ones like Digg, get mentioned in the same breath as $30M, I wonder what, if anything, we learned from the last dot.com boom and the portfolio killing bust that naturally followed.