With money-losing Internet companies getting sky-high valuations, some investors are feeling deja vu from the dot-com bubble. Talk of a new tech stock bubble is increasing. On Monday, activist investor Carl Icahn warned that the stock market could suffer a “big drop,” because valuations are rich and earnings are being driven more by low borrowing costs than management’s efforts to boost results, Reuters reported . Icahn recently pocketed a tidy profit on Netflix (NFLX), a company whose own CEO warned last month about “momentum-investor-fueled euphoria” in its stock. Twitter (TWTR) has become the poster child for a lot of bubble talk lately. The unprofitable microblogging and news feed service went public on Nov. 7 and surged 73% on its first day of trading, reaching a market valuation of roughly $25 billion. The stock priced at $26 a share and soared as high as 50.09, before ending the day at 44.90. It …
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Twitter, Internet company valuations spur bubble talk