5 ms·

48% discount from peak valuation (95 G$ in Mar 2021). Ouch.

by akavi 4y ago

schnebbau 4y ago
95 Gazillion dollars?!?!?
- jefftk 4y ago
  "G" for "Giga", 1e9.
- reikonomusha 4y ago
  "giga-dollars" i.e. 1 billion dollars
  - lemoncucumber 4y ago
    I prefer to use gibi-dollars ($1073741824)
- djbusby 4y ago
  I read "Giga Dollars". To remove the ambiguity of Million, Billion, Millard, Long Million and Short Million perhaps.
  - airstrike 4y ago
    Hmm.. but there's no ambiguity in "billion"? There's certainly less than in "giga dollars"
    - djbusby 4y ago
      Billion is different in Short (10^9) vs Long (10^12) scale. See: https://en.m.wikipedia.org/wiki/Long_and_short_scales https://en.m.wikipedia.org/wiki/Long_and_short_scales
      - airstrike 4y ago
        The short scale isn't a thing in English or when talking dollars which is implied by the dollar sign in "$95 billion" and the fact that this is a US company "$95 billion" simply means $95,000,000,000.00 and there's no ambiguity...
        djbusby 4y ago
        A thread on HN yesterday regarding Credit Suisse where this ambiguity came up. That thread was in English and was about US Dollars.
        kaashif 4y ago
        Are you talking about this comment? https://news.ycombinator.com/item?id=35152388 https://news.ycombinator.com/item?id=35152388 That doesn't read like anyone is actually confused over the meaning of "billion" , it seems like people are just speculating on whether this error is long/short scale confusion between languages. Personally, I think it was just a typo - there is no conceivable way that a billion CHF could ever be a million USD regardless of the scales used... Apologies if you're referring to a different comment.
- fnordpiglet 4y ago
  Inflations a monster
enahs-sf 4y ago
Steep haircut, but 50% of something still better than 100% of nothing.
cperciva 4y ago
To be fair, 30 year treasuries have fallen almost as much. Did Stripe's valuation drop, or did the long-term value of today's cash increase?
- thaumasiotes 4y ago
  Doesn't the long-term value of today's cash move in the opposite direction of the inflation rate?
  - fnordpiglet 4y ago
    I think they’re referring to net present value of future cash is determined by the difference between interest rates and inflation discounted over time. As inflation has gone up so have interest rates. Cash today is worth more in the future, especially if inflation is tamed and you locked in a good interest rate on a long dated bond.
    - cperciva 4y ago
      Sort of. The value of companies is (meme stock speculation notwithstanding) the net present value of their future cash flows; for startups that tends to be far into the future cash flows. It's only natural that the price drops when interest rates go up.
      - thaumasiotes 4y ago
        But that's due to noncash instruments having higher-than-previously nominal yields. The long-term value of cash is unaffected. (Except to the extent that the higher opportunity cost of holding cash lowers the value of cash.)
  - lmm 4y ago
    This is about the opposite of long-term value, it's about the value of cash right now. This deal is mainly about letting Stripe employees cash out today, and high inflation means cash today is scarce/expensive.
nprateem 4y ago
Looks like they tried to time the market and failed. Smells like greed to me.
nrmitchi 4y ago
That's a fair point, but wasn't that $95B valuation based on an ~$500M fundraise primarily to the irish government (as well as, I'm assuming, any funds that had participation rights)? I'm not saying it doesn't look like a bad drop in valuation, but it's not clear that the $95 valuation would have been supported by any larger.

48% discount from peak valuation (95 G$ in Mar 2021). Ouch.

by akavi 4y ago

48% discount from peak valuation (95 G$ in Mar 2021). Ouch.

schnebbau 4y ago

95 Gazillion dollars?!?!?

jefftk 4y ago
"G" for "Giga", 1e9.
reikonomusha 4y ago
"giga-dollars" i.e. 1 billion dollars
- lemoncucumber 4y ago
  I prefer to use gibi-dollars ($1073741824)
djbusby 4y ago
I read "Giga Dollars". To remove the ambiguity of Million, Billion, Millard, Long Million and Short Million perhaps.
- airstrike 4y ago
  Hmm.. but there's no ambiguity in "billion"? There's certainly less than in "giga dollars"
  - djbusby 4y ago
    Billion is different in Short (10^9) vs Long (10^12) scale. See: https://en.m.wikipedia.org/wiki/Long_and_short_scales https://en.m.wikipedia.org/wiki/Long_and_short_scales
    - airstrike 4y ago
      The short scale isn't a thing in English or when talking dollars which is implied by the dollar sign in "$95 billion" and the fact that this is a US company "$95 billion" simply means $95,000,000,000.00 and there's no ambiguity...
      - djbusby 4y ago
        A thread on HN yesterday regarding Credit Suisse where this ambiguity came up. That thread was in English and was about US Dollars.
        kaashif 4y ago
        Are you talking about this comment? https://news.ycombinator.com/item?id=35152388 https://news.ycombinator.com/item?id=35152388 That doesn't read like anyone is actually confused over the meaning of "billion" , it seems like people are just speculating on whether this error is long/short scale confusion between languages. Personally, I think it was just a typo - there is no conceivable way that a billion CHF could ever be a million USD regardless of the scales used... Apologies if you're referring to a different comment.
fnordpiglet 4y ago
Inflations a monster

enahs-sf 4y ago

Steep haircut, but 50% of something still better than 100% of nothing.

cperciva 4y ago

To be fair, 30 year treasuries have fallen almost as much. Did Stripe's valuation drop, or did the long-term value of today's cash increase?

thaumasiotes 4y ago
Doesn't the long-term value of today's cash move in the opposite direction of the inflation rate?
- fnordpiglet 4y ago
  I think they’re referring to net present value of future cash is determined by the difference between interest rates and inflation discounted over time. As inflation has gone up so have interest rates. Cash today is worth more in the future, especially if inflation is tamed and you locked in a good interest rate on a long dated bond.
  - cperciva 4y ago
    Sort of. The value of companies is (meme stock speculation notwithstanding) the net present value of their future cash flows; for startups that tends to be far into the future cash flows. It's only natural that the price drops when interest rates go up.
    - thaumasiotes 4y ago
      But that's due to noncash instruments having higher-than-previously nominal yields. The long-term value of cash is unaffected. (Except to the extent that the higher opportunity cost of holding cash lowers the value of cash.)
- lmm 4y ago
  This is about the opposite of long-term value, it's about the value of cash right now. This deal is mainly about letting Stripe employees cash out today, and high inflation means cash today is scarce/expensive.

nprateem 4y ago

Looks like they tried to time the market and failed. Smells like greed to me.

nrmitchi 4y ago

That's a fair point, but wasn't that $95B valuation based on an ~$500M fundraise primarily to the irish government (as well as, I'm assuming, any funds that had participation rights)? I'm not saying it doesn't look like a bad drop in valuation, but it's not clear that the $95 valuation would have been supported by any larger.