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I think the two sides of this discussion are battling between current economics vs. ROI for humanity. WhatsApp adds almost zero because there are many other op
by gtirloni 12y ago
I think the two sides of this discussion are battling between current economics vs. ROI for humanity.
WhatsApp adds almost zero because there are many other options to text everybody. So it's just another company that got traction. It could die tomorrow and nobody would worry much. It can be easily replaced. There is no long lasting value (again, due to so many other options and the easiness of creating it from scratch again). Text chatting is a exhausted marketed, in terms of innovation. If WhatsApp is secretly working on hologram technology then it'd be another entirely different matter, but I doubt that's their focus.
SpaceX, on the other hand, is making breakthroughs in engineering and science. What they create will be with us for a long time, can yield multiple patents, can feed into other inventions.. I think it's very difficult to argue that creating technology that allows us to go to other planets has little value. I think it has a lot.
So I think we're substituting the question "where should humanity invest money?" for "which companies are correctly valued". The latter is much easier to answer based on economics. The former, quite difficult to agree on.
- free2rhyme214 12y agoI totally agree with you. I think we all know Facebook overpaid for Whatapp and SpaceX has a higher realistic valuation. Great post!