Probably not. While the numbers are eye-popping, they aren’t irrational (which doesn’t necessarily mean that the valuations will be proved right, just that you don’t need to be crazy or stupid to buy into them).
And that’s what’s important. A bubble is a reflexive phenomenon, where sentiment runs away with itself. Investors bid up assets only because they are rising, with the belief that they’ll always be able to sell to someone dumber than they are. As we’ll see, that’s not what’s going on now and, in fact, all that money sloshing around is a very good thing.
Before we move on to the specifics of the tech industry, let’s start by talking a bit about how to determine what a company (or any other asset for that matter) is worth.