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The problem is that your real worth, and your potential worth are two different things. Facebook/Tencent finds their users and especially their youth valuable.
by tokenizer 13y ago
The problem is that your real worth, and your potential worth are two different things. Facebook/Tencent finds their users and especially their youth valuable. Factoring that into their value, they think they're worth 4 billion.
That said, that's far too high of a real worth for this company, illustrating how a prospective buyer can really drive up your companies pricetag. It may factor in real revenues and growth potential, but this price is largely market speculation. Very risky, but apparently worth it for some big players. My advice to the little guy is to stay out of it cause if one thing goes wrong the whole price could come tumbling down.