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Priceline.com, the online airline and hotel reservation site, shows growth taking business away from Expedia and Orbitz. Priceline.com's revenues come mainly from hotel bookings. Second quarter 2013 earnings were up 24% to $437 million and revenue was up 27% to $1.68 billion. Its share price has flucuated wildly from $1000 in the dotcom bubble days down to single digits and now back up to $1000 in August 2013. The stock hit $990 in 1999, then fell to $10 after the burst of the dot com bubble. After heavy spending to expand its U.S. presence Priceline.com's share price increased by 50% in the first 8 months of 2013. It recently acquired travel site Kayak to expand its access to customers.

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Davidoff describes the hype in Silicon Valley that leads to soaring valuations- hype about Nest includes founder Fadell's reference to his vision for home thermostats that would change the world. All the participants benefit says Davidoff, Facebook, Google, Microsoft, venture capital firms and firms acquired such as Nest. Nest was acquired by Google for $3.1 billion, when it would have been valued at about $2 billion before Google showed interest. The hype lets Google present itself as the company of the future, and boost its image, which means a lot in getting investors to support the huge valuations.

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Internet IPO's of unprofitable companies in 2013. Investor interest in these companies.

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T. Rowe Price marksdown its tech startup investments, including Uber.

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A way of gauging the extent of a bubble in the internet IPO's in 2013, says Hulbert, is the first day return on IPO's in the U.S. of 25% in mid-Aug to mid-Nov 2013 compared to 96% in the first quarter of 2000. He cites a study by finance professors Jerry Wurgler of New York University's Stern School of Business and Malcolm Baker of Harvard Business School, which stresses the need to use objective indicators in assessing the current equity markets and not relying on memories alone. Investor caution after two bubbles since 2000, active regulatory oversight of markets, and legal frameworks updated for changes in financial markets have provided additional safety and stability to markets. The study authors cite evidence for the changes in the way investor sentiment values speculative stocks compared to established stocks. The price/book ratio per share or net worth of established stocks is way higher compared to speculative stocks in 2013 compared to 2000. In 2013 established companies in the S&P 1500 index, according to FactSet, had a 49% higher price/book ratio on average than speculative stocks. Wurgler and Baker used dividend paying stocks as "established" stocks compared to non dividend paying stocks as "speculative." Another piece of evidence that companies are also adjusting to sentiment this time is that less money is coming from stock issuance in 2013 of 11% compared to 20% in 2000. Visible evidence of company behaviour is also telling- banks are changing bahaviour after tougher regulatory oversight and settlements in 2013. GE is planning to shrink GE Capital and put it on sale. Investors have sharply cut back allocations to stocks and are returning to modestly higher allocations from much lower levels and memories of 2000 and 2008 are still present....

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The size of Matteo Renzi's win in the nationwide primary, with about 70% supporting him of 2.9 million voters, suggests the mood is changing in Italy for making changes to the old system. Renzi talks about changing education, the government health system, taking a new look at union positions, and coming into a consensus with conservative voters. Renzi and prime minister Letta are moderates from a younger generation in Italy from the same party and need to work together. Angelino Alfano of the centre right is also from the younger generation, marking a shift in Italy.

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Many of the companies from the dot com tech bubble of 1999-2000 which were given $1 billion valuations went out of business, including names like Webvan and eToys. The same buble behaviour is evident in 2012 as many companies such as Facebook, Pinterest, Evernote, have $1 billion valuations, similiar to 2000. This is asignal that valuations may have spun out of control. It takes a few deep pocketed investors to raise the valuation of startup internet companies to these untested companies.