HP CEO Meg Whitman has had a front row seat in the tech arena for a long time now. She sat at the head of eBay and watched the dotcom craze of the late 1990s. She watched the bubble burst, and she has witnessed the incredible climb of recent tech companies.
Now Whitman is warning that “certain sectors… are bordering on being too frothy,”
During an interview with CNN’s Poppy Harlow, Whitman said many young companies “haven’t actually proven themselves” but have managed to develop “extraordinary valuations.”
She is likely referring to ‘Unicorns’ or companies like Uber, Airbnb and Snapchat which are valued in the billions, despite failing to turn a profit or go public. There are currently 141 unicorns on the market.
“I just tend to be a little conservative about these things because I lived through that 1998, 1999, 2000, 2001 timeframe,” said Whitman.
Uber is now eyeing another $1 billion round which would value the company at $70 billion.
Airbnb is worth more than top hotel companies Hilton Worldwide, Hyatt Hotels, and Marriott.
Analysts in the tech sector for the most part are split on whether another tech bubble is just around the corner.