Goldman Sachs COO: Mark Cuban Is Wrong, Today's Tech Companies Have Become Part Of Our Everyday Existence

When the tech bubble of 2000 busted, the Street justified it by calling valuation of companies then unsustainable.

However, according to Gary Cohn, Goldman Sachs Group Inc GS President and COO, times are different now.

Cohn was on CNBC Wednesday to discuss how the NASDAQ of 2000s was different from NASDAQ of today.

Earnings Have Changed

"5,000 it's a relevant number because last time 15 years ago when NASDAQ rallied up, it was a number where we stalled out and we retrenched for 15 years, so we are back up there, it's an interesting number," Cohn said. "The composition of the companies in the NASDAQ and the multiples and the earnings of NASDAQ 5,000 they look nothing like they did 15 years ago."

Not Tech Heavy

On why the NASDAQ is different today, Cohn said, "It's not a tech heavy index, it's a real index of American companies and you look at the multiple of the NASDAQ today versus the multiple 15 years ago, you look at the revenue, the real revenue, you look at the earnings, you look at the ROE, you look at the EPS. It's completely different NASDAQ today than it was 15 years ago."

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Tech Companies Have Become Part Of Our Everyday Life

Cohn was asked why Mark Cuban is wrong in comparing the current tech companies with those of the tech bubble of 2000. He replied, "I think he is wrong because those companies [Uber, Facebook IncFB, Twitter Inc TWTR] right there are companies that were all using these companies every day of our life.

"We are using these companies; these companies have become part of our everyday existence. We depend on these companies, we rely on these companies. These companies have real cash flow, they have the real ability to grow and they are showing you how they can grow, how they can create market share, how they can disrupt and how they can grow in size," Cohn concluded.