Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
"Online-storage service Dropbox Inc. is raising a funding round that could value it at more than $8 billion, according to people familiar with the situation, though new figures reveal its revenue growth is decelerating."
"Investors have lately shown interest even in startups with fledgling or no business models. In recent weeks, Pinterest Inc. banked $225 million from Fidelity Investments and other backers at a $3.8 billion value despite its lack of revenue; Snapchat Inc., a free messaging service that makes no money, turned down a buyout offer worth billions from Facebook Inc. "
I wonder if the investors who lose a lot of money on these inevitable busts are going to ask for bailouts or just cry and pout about how unfair the SEC didn't do enough regulating to ensure this didn't happen in the first place.
It's really sad that these companies like DropBox, Snapchat, etc think they are worth so much.
The companies can think whatever they like—it’s the investment bankers who set the prices. The valuations are so ridiculous because no one knows what free user/subscribers are worth. In Google’s case they’re worth hundreds of billions of dollars because the meta-data generated can be parsed and sold to advertisers. Such a calculus is unlikely to hold for Twitter or Dropbox. I use them all the time for work—but I’m a media professional. I promote my work through Twitter and send large files to collaborators and clients via Dropbox. They’re incredibly useful services, but mainly for high-end, professional or prosumer users. Since a lot of finance- and media-types use them and they assume everyone else does as well.
As tempting as it is to try to ride Facebook, Twitter etc.....wave, they scare me WAY to much for to throw my money in the hat.
That being said the technology stocks have been the strongest in the last 3rd of bull markets (Money magazine) I might put some of my money in but it won't be in the internet companies.
"Online-storage service Dropbox Inc. is raising a funding round that could value it at more than $8 billion, according to people familiar with the situation, though new figures reveal its revenue growth is decelerating."
"Investors have lately shown interest even in startups with fledgling or no business models. In recent weeks, Pinterest Inc. banked $225 million from Fidelity Investments and other backers at a $3.8 billion value despite its lack of revenue; Snapchat Inc., a free messaging service that makes no money, turned down a buyout offer worth billions from Facebook Inc. "
It's really sad that these companies like DropBox, Snapchat, etc think they are worth so much.
I don't blame them, if you had a company like this, wouldn't you want to get on the bandwagon before the burst? Look at Twitter, is 8 billion really so much compared to that tech titan?
The fact that snapchat turned down 3,000,000,000 is just incredible... The next digg?
My wife and I are looking to buy in San Jose, so I'm kinda hoping for a nice big burst to bring down real estate...
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
