Snapchat Fetches $10 Billion Valuation

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Someone please tell me how Snapchat, a company with no revenue, is worth $10 billion?

Kleiner Perkins Caufield & Byers has agreed to invest in the fast-growing ephemeral message service Snapchat Inc. at a valuation of close to $10 billion, people with knowledge of the matter said.
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Wow this is insane, feels like the dot com bubble all over again , every 'app' is valued at billions in no real business model.
 
They squatted on the ground, took a shit, and the 2 lincoln logs that came out formed something like a "10"
So they said 10 billion.
 
Dick picks are big business these days and SnapChat has a data-mountain full of them.
 
T_A said:
Wow this is insane, feels like the dot com bubble all over again , every 'app' is valued at billions in no real business model.
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You read my mind buddy. After two bubbles in the last 15 years, and a depression (yes, depression), they've learned nothing. These greedy fools are going to take down the damn economy again, and its going to be even worse this time.
 
B2BigAl said:
You read my mind buddy. After two bubbles in the last 15 years, and a depression (yes, depression), they've learned nothing. These greedy fools are going to take down the damn economy again, and its going to be even worse this time.
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It's ok, the assets of the people making the decisions can handle the strain of many more crashes. When you have a few hundred million, what's 10, 20, 30 million? It's not like budgeting for food, electricity, or heat is ever going to be a concern of theirs.
 
Gweenz said:
It's ok, the assets of the people making the decisions can handle the strain of many more crashes. When you have a few hundred million, what's 10, 20, 30 million? It's not like budgeting for food, electricity, or heat is ever going to be a concern of theirs.
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Tell me how you feel after their gambling destroys your retirement.
 
Why was Manute Bol drafted by an NBA team even though he hardly had any basketball experience? Because he was 7'7".. he had potential!! That is why Whatsapp.. Oculus Rift.. TWITCH.. Youtube.. get bought for so much.. it is because they have potential to be the "next big thing" and because they have tons of users!! Twitter wasn't monetized for a long time so perhaps Snapchat can be as well.

71% of Snapchat users are 25 and under so probably a feeling that this is an app kids will grow up using and keep using as adults. It isn't about what it is worth today.. but what can it be potentially worth in the future!!
 
B2BigAl said:
You read my mind buddy. After two bubbles in the last 15 years, and a depression (yes, depression), they've learned nothing. These greedy fools are going to take down the damn economy again, and its going to be even worse this time.
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The market is supposed to devalue itself every 10 years or so anyway. Problem is when you have big dollars controlling when that actually happens. Not only will it continue to widen the gap between the rich and poor, but the biggest losers are small-time investors and middle class players looking to make a small buck (comparatively speaking), who will not see it coming and unwillingly contribute to those big money's coffers, all the while becoming poor themselves. So, yeah, it's only gonna get worse.
 
So...what you're telling me is that the investors think that snapchat's userbase is worth 10 billion?
 
T_A said:
Wow this is insane, feels like the dot com bubble all over again , every 'app' is valued at billions in no real business model.
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I cannot believe how this type of crap keeps happening over and over again in different variations. The laws will never keep up because they are purely reactionary.
 
Steve said:
:rolleyes: A userbase that a.) generates no revenue b.) will leave you in a heartbeat for the next app fad.
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Look at the brighteisd, Steve. Based on this [H]ard|Forum must be worth 11ty bajillion dollars.
 
Insula Gilliganis said:
71% of Snapchat users are 25 and under so probably a feeling that this is an app kids will grow up using and keep using as adults. It isn't about what it is worth today.. but what can it be potentially worth in the future!!
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When they grow up, most of them are going to stop taking selfies of their penis.
 
The valuation is the net present value of all future revenues. They make no money no, but the expectation is for them to be able to capitalized the user base with ad, etc revenues.

This is how all companies in the stock market are valued.
 
1. hype your 'app' on social media
2. attract a user base of pampered, clueless and idiotic American teenagers and 20 somethings who think updating their status 20 times a day is more important than work
3. claim your app has 10 million 'customers of tommorow'
4. Profit

note, there is no 3.????. Its a viable business model these days.
 
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