Startups in Silicon Valley may be in an early-stage financing bubble, but they’re partying like it’s 1999 in China.
This morning, China-based provider of information-technology services iSoftStone (NYSE:ISS) rocketed 30% at its IPO. The insane demand for another Chinese IPO comes on the heels of other major IPO returns in Chinese video site Youku (NYSE:YOKU) and Chinese retailer DangDang (NYSE:DANG).
Yes, these companies have awesome potential. But valuation is everything. If you feel like getting caught up in the hype, just remember: Yahoo (NASDAQ:YHOO) traded at $108 a share in 1999. For long term shareholders, that’s roughly a loss of 85% based on today’s price of $16.70 a share.
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