Sean Parker Thinks We May Be In A 'Valuation Bubble,' But Not A Tech Bubble

The NASDAQ Composite (INDEX: .IXIC) is trading at its all-time highs. The last time the index traded at levels above 5,000 was during the tech bubble. So, is this déjà vu? Are we yet again in a tech bubble?

First president of Facebook Inc FB, founder of Napster, an early investor in Spotify and arguably one of the best tech entrepreneurs of our times, Sean Parker, was on Bloomberg TV recently to answer that question.

Unique Moment In History

"I don't believe we are in a bubble," Parker began.

"We are experiencing a unique moment in history where, for the first time, the entire global population in the developed world is online and has computing in their pocket.

"When you think about a billion people on Facebook, you think about the number of smartphones that are in people's pocket, the mobile computing revolution, the ability to be always on."

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Little Bit Of Irrational Exuberance

He continued, "This opens the door for the kind of disruption, I think, it may not justify all of the valuations. There is a little bit of irrational exuberance around valuations.

"If anything, we are maybe in a valuation bubble. But, I don't think we are in a market bubble because, I think, we'll continue to see more multi-billion dollar companies over the next 10 years coming out of this space."

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Not A Bubble

"This is by no means over and, I think, we are just going to see more of the same. We may see a few companies and some valuations getting a little ahead of themselves. But, I think generally speaking, it's not a bubble," Parker concluded.