This reminds of something Aswath Damodaran pointed out a while back, that software companies that rely on advertising are collectively overvalued, in that they

This reminds of something Aswath Damodaran pointed out a while back, that software companies that rely on advertising are collectively overvalued, in that they would need to altogether capture more than 100% of the market in order to justify each individual valuation. So any failure to "exceed expectations" results in a seemingly unreasonable drop in market value. [1] [1] http://aswathdamodaran.blogspot.ca/2013/10/when-pieces-dont-add-up-micro-dreams.html http://aswathdamodaran.blogspot.ca/2013/10/when-pieces-dont-...