Could this be a bubble for fast-growing Internet tech stocks like Facebook (META 3.70%), LinkedIn, and Twitter? There are several signs that it could. For one, an outsized sell-off on Monday for these stocks compared to the overall market suggested the market may be reevaluating the rosy expectations priced into these companies' lofty valuations. Second, a recent filing from cloud storage company Box to go public despite the fact it's losing more money than it's taking in and it doesn't expect to reach profit levels in the foreseeable future.
In the video below, Fool contributor Daniel Sparks takes a closer look at this potential tech bubble. Pointing to Facebook as an example, he acknowledges that some of these growth stocks do deserve premium valuations since they are growing their underlying businesses by leaps and bounds. But has the extent of valuations on these fast-growing Internet growth stocked reached dangerous territory?