Maybe the future is in these over-glorified social media lifestyle companies acquiring or bailing out "worthy" startups working on "hard problems". Sort of like how ad-funded Google is investing in health longevity research and the like.

The future is going to be funded from the largesse of dumb app companies, because the public would rather fund dumb app companies than rocket ship firms.

That or because it's more profitable to do so, especially on a risk-adjusted basis? What's with the negativity around funding apps if they create tangible value? What makes them "dumb"?

If you believe there's some amazing untapped opportunity in funding rocket ship companies, then perhaps you should raise some money from LPs and invest in rocket ship companies.

The amount it's valued at seriously blows my mind. Like this is an app that's main features are sending 10 second videos and images.

Complexity does not correlate to value. All my friends use Snapchat and no one uses Facebook.

High tech has become more marketing and less tech.

Considering the state of the snapchat app on android, I absolutely agree.

Can you elaborate on the state? (I never used SnapChat, but I am on Android.)

For one, I read in an HN thread that Snapchat Android doesn't actually use the camera API for the phone, it just screenshots the screen.

That was my sentiment five years ago for Instagram.

9 Apr 2012

2008:Sun buys MySQL for $1B. 2012:Facebook buys Instagram for $1B. DB tech running half the web+revenue vs hipster photo filter app+no rev.

I saw pretty easily how Instagram could be worth a billion to FB, who has a social network and wants to expand their user base / stop competition from rising.

I don't understand how these shares that pay no dividend and give no voting power are worth $24 each. They are basically "SnapChat Fun Bucks." Anyone buying it just hoping another person down the line will pay more for it. On top of that, we know there's a large number of people holding it (employees) that are going to start selling their shares over the next year.

I just don't get how this has any value at all.

Short it if you truly believe the stock will go down. Easy money ;).

I'm humble (and risk averse) enough to admit I could be wrong. But it baffles me.

To be fair, you didn't take into account the difference that $1B was worth between those times. Not just inflation, but the economic situation in 2008 as well.