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That's wonderful. But the value you get out of it and the value an investor gets out of it are two very different matters. A price of $3 billion demands somethi

That's wonderful. But the value you get out of it and the value an investor gets out of it are two very different matters. A price of $3 billion demands something like $120 million^ in profit, annually, in perpetuity... or more, if there's significant risk in the business plan like "we assume we will get that money in the future and are not making any of that money now". (^ using a S&P500-ish 4% real discount rate here, to keep things simple)

RaphiePS 13y ago
Of course, I think the company is massively overvalued. One thing I think they do have, however, is really strong engagement. Whenever I browse facebook or twitter, I'm very detached. I'm probably even working on something else. It's the same as when I occasionally watch TV -- half attention at best. With Snapchat, I've got laser-focus. Whatever I'm looking at is going away in seconds and will never come back, so it's got a special urgency. I'm sure it won't be easy to convert this into revenue, but I believe that engagement is special.