I agree with your statement on valuations, however I think there's also another factor at play here >The valuations are getting to the point where they only ma

I agree with your statement on valuations, however I think there's also another factor at play here >The valuations are getting to the point where they only make sense if Earth had many, many more people on it. The fact is, it is still very hard to gauge how much a company will succeed by. Take the example of Friendster etc and Facebook; when Facebook started, Friendster etc were the dominant players; however, now, we all know who's the dominant player in social. At one point, they may even have had the same valuation. My point being, if two companies in the same market are getting $1 billion valuations right now, it doesn't necessarily mean that people think the market is worth $2 billion down the track; some people are hoping one will win over the other. Indeed, if Evernote develops some killer features and dominates it's space, it'll be a steal for $1 billion