On 7 Mar 2012
palo alto prices up, will eventually spread thru rest of bay area,
You could of said the same about.. ARIBA back in 1999-2001... spit twice before IPO and spit afterwards. From $600 /sh to under $5/sh.
So why not talk about Cisco ? well Cisco, like every other IPO before the bubble, was never overvalued when it did its IPO.
Want to show stock appreciation... They had to EARN IT for a stock to up 1%. Yes.. EPS did matter.
Not sure what your point is. No company is always on top all the time.
What's wrong with Cisco? Market Cap still > $100B, still a major employer in the valley. Apple & Google are both in the top 20 IN THE WORLD in market cap. Add to that Oracle, Intel, HP, Cisco, Ebay, and I'm sure I'm forgetting a few. Facebook may come & go, but it's coming right now, and not going away for a few years at least.
> How did PA become 5 times more desirable relative to another desirable city like Walnut Creek, in just 6 short years?
I'll repeat my point again:
1) Pricing are on exponential curve. Be it houses, cars, wine, or watches.
2) Palo Alto is the creme of the crop of BA. You don't have to appreciate it, but the prices just reflects the total amount of wealth in SV. Why do you feel 5x more than WC is unreasonable & unsustainable? I don't see any large growth in companies around WC?
3) You cannot claim it to be a bubble if it's lasting decades.
I don't live in PA, I don't particularly appreciate PA. I was in the same boat as all of you 15 years ago and decided there is no point paying a premium to live in PA. Obviously, looking back, I would have been better off if I had bought there (both financially, and kids education wise).
Anyways, I stand by my statement given the number of large corporate giants still expanding around PA, I don't see PA prices going anywhere but up (or sideways) for the next 5-10 years. If you are waiting for the "bubble" to pop, be prepared to wait a long time.