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A comment on Color Will Be The Pin That Bursts The Startup Bubble. Parent comment
They claim 500MM active users. Assume that's a total lie, and it's 50MM. Assume their valuation is 100 billion (twice the Goldman round).
Let's also assume that they hit a P/E ratio of, oh, 10. (Google's at 22, Apple 19, Yahoo 18, so 10 is really low.)
So to hit a 100b valuation, they'd need to earn 10b annually, or $200/user.
$200/user is on the high end, but reasonable, at least as far as U.S. users are concerned.
(For what it's worth: Twitter would have been a good example, I think.)
They claim 500MM active users. Assume that's a total lie, and it's 50MM. Assume their valuation is 100 billion (twice the Goldman round).
Let's also assume that they hit a P/E ratio of, oh, 10. (Google's at 22, Apple 19, Yahoo 18, so 10 is really low.)
So to hit a 100b valuation, they'd need to earn 10b annually, or $200/user.
$200/user is on the high end, but reasonable, at least as far as U.S. users are concerned.
(For what it's worth: Twitter would have been a good example, I think.)