Fears of tech wreck 2.0

ANOTHER couple of days like this and the great tech bubble of 2012 might recede into history.

Several companies that were supposed to be the foundation of a new internet era plummeted last week. There were instant echoes of the crash of 2000, when the money stopped flowing, the dotcoms crumbled and Silicon Valley devolved into recriminations and lawsuits.

Shares of Facebook stumbled to a new low on Friday, closing just above $US23.70 after its first earnings report revealed a murky path to any profit that would justify its valuation. The heavily promoted $US100 billion company on the eve of its May debut is now a $US65 billion company and falling.

Zynga, the games company that uses Facebook as a platform, was battered even harder on Thursday, leaving its value at less than a quarter of its peak.

Netflix, which is trying to move from physical discs to streaming video, and the group-buying company Groupon are at a fraction of their recent worth.