Have you guys heard about the NASDAQ drop in the past few days? The current drop seem to be what economists call a readjustment of value... In this case, it means that there was a bit too much speculation regarding these stocks and now people have realized that and started selling in the fear that the price would come down. The fact that people did this brought down the price by itself, we call this phenomena a "self-fulfilling prophecy". The other event that may also explain this small rush out of internet companies is the tampering of Quantitative Easing (QE) from the Fed... anyone can think how that works?
- Mathieu Provencher