4 ms·

I don't think their analysis "ignores new streams of business". They specifically highlight how the different potential markets should be approximated.

• pc86 11y ago
  Not only that but Yelp "getting into" a new line of business or revenue stream does not mean you get to say "it's a $50 billion market we're getting into so clearly we can add $5 billion to Yelp's value!" Until it's generating something (e.g. cash on the balance sheet or some other tangible benefit) I don't see how it would affect valuation at all.
  • sadface 11y ago
    Totally agree in principle, but it does seem like just "getting into" the food delivery business is a humorously quick way to get a $X00M valuation in the private markets.
    • aub3bhat 11y ago
      Well YELP is public. Public markets can also be quite irrational.
• deleted 11y ago
  [deleted]