Company That Never Made Any 'Money,' Is Valued At $10 Billion

If you don't believe that business runs America, and has too much power and influence, look at this. China wants to spend 10 billion dollars for a company that doesn't produce any tangible product and has yet to produce profits. While many regular people are still struggling to pay the bills people in Silicon Valley and wall street make vast fortunes without doing anything useful. And people claim the government is a waste of money.

Snapchat, A Company That Has Never Made Any 'Money,' Is Valued At $10 Billion

www.huffingtonpost.com...

How Ironic....kind of like early NASDAC hype or what?
Some kind of shell game going on for sure.....

a reply to: CB328

It's valued based upon guesstimated future earning potential.

Facebook and Google were like that.

Bit of a crap shoot... not unlike gambling, in fact.

But no doubt, the valuations as of late seem crazy...and keep on getting crazier.

All the kids are nuts about Snapchat. My nieces talk about it all the time.

This is disturbing.

Business people investing to make future profits.

Valuations set by forward projections.

Possibilities of bankruptcies.

Hmmm.

In today's world, information is EVERYTHING. Social media of all stripes has information and information is power.

a reply to: CB328

Yeah, because they prolly owe that much.
If I owe a billion? I must be worth a billion?

a reply to: xuenchen


I know! Where's the planning committee?

Oh please. Snapchat will be dead in 12 months. Look at the Twitter stock price. The kids have all already moved on from Twitter. Soon as the adults start joining up - the kids leave. Just like facebook, myspace, lol.

Oh please. Snapchat will be dead in 12 months. Look at the Twitter stock price. The kids have all already moved on from Twitter. Soon as the adults start joining up - the kids leave. Just like facebook, myspace, lol.

So, if somebody in the know believe this company has a future worth staking 10B on, does that mean the economy isn't going to collapse anytime soon?

I think I have a pretty good idea who is interested in the snapchat software and pool of members. The advertising intel alone is worth millions....

$10bil is a bit outrageous in my opinion.

Why is your criterion here how much money snapchat makes?

Snapchat is a GOLD MINE, this is why facebook wanted to buy them....but snapchat declined.

The value is in the millions of users they have and the potential for the Chinese company or facebook if they can "buy" those users. It's BILLIONS worth. Can't you see this? How much money they make with this app is not of interest here. It's the value of the app and the users for fb.

Edit: Lol at your opinion that "useful" is defined as in how much profit someone makes. Well..let's put it that way, it MUST be useful, alright, otherwise millions of people all over the globe wouldn't use snapchat. And..rest assured, the multi-billion companies who want to buy snapchat know very well how useful it is...or do you think they bid $10b on something "not useful"?

Check this out: expandedramblings.com...
Mind boggling stats.

I wonder if its about the newer "patents" on process and methodology they may have.

I recall that every damn thing in this so-called free market is driven by profit growth and revenue....

So this is somehow magically exempt from that, eh?

NO, I suspect this isn't a goldmine for it's actual use, but more how valuable it is to marketeers who use automated systems to derive user data from what they look at, upload, and delete. But then, if I had any great insight into the matter I would be rich... so perhaps it's just sour-grapes.

When you are in the club of sharks that have the privilege of valuing a company... what revenue a company actually generates isn't as important as what other 'friends' they run with.