$1 Billion as Milestone and Omen - NYTimes.com

Another timely reality check

"The rise and stumbles of Fab demonstrate how swiftly the fortunes of start-ups can change. At the company’s giddy high point, it also illustrated why some billion-dollar-plus valuations have raised concerns of a new dot-com bubble.
“Predicting what’s undervalued and what’s overvalued is fabulously hard,” said Josh Lerner, a professor of entrepreneurship at Harvard Business School. “It’s a trope to see a young, highly valued company and say it’s wrong, but sometimes it is.”

[...]

“This is a drama that has played out many times before,” said Mr. Lerner of Harvard. “The music inevitably stops at a certain point.”"

$1 Billion as Milestone and Omen - NYTimes.com