"It's based on how much money the company's expected to make over its lifetime." - So guess work right. Because a company that isn't generating revenue yet with

"It's based on how much money the company's expected to make over its lifetime." - So guess work right. Because a company that isn't generating revenue yet without a model yet is nothing more than speculation. Like you cannot reliably predict the stock market based on historical data alone. What this all means is that companies like Snapchat are all hype geared mainly for the ones with vested interest to get a quick cash out. There is nothing "lifetime". Kinda like the stock market where you see volume (demand) move thinking that supply will drop and price will go up so you make stupid decisions to jump in. As for Facebook, maybe Snapchat is worth that much to them. To Facebook it would increase their users engagement and spin the marketing engine. For the public market Snapchat is an over valued company based on speculation, hype and fueled by those with vested interests. There really is nothing stopping competitors from entering this space. There is no IP in timed photo sharing. Unless I missed something?