"WhatsApp may be "cheaper" than most rivals: Facebook paid just $30 per Instagram user at the time (the service had 33 million users when Facebook bought it, compared to 150 million today). Facebook is spending $42 per WhatsApp user.
But given WhatsApp's enormous user base, its purchase price might be a bargain compared some of its competitors."
"LinkedIn's (LNKD) share price values that professional social network at $153 per user. Twitter trades at $140 per user, and Facebook is at $123. Even at its latest $2 billion valuation, Snapchat trades at $50 per user. (And Snapchat reportedly turned down a $3 billion offer from Facebook last year.)"
This reminds me of the dot.com bubble era where prices were justified by comparing to other over inflated stocks.
I'm surprised WhatsApp didn't go IPO. With the relative lack of new tech IPOs, I could have seen WhatsApp IPO at a $50 BLN or maybe even $100 BLN valuation, after analysts hyped it up using the same analysis as above. A case can be made that WhatsApp would have kept growing much faster than Facebook and eclipsed Facebook in a few years time.
Facebook FB 69.63 +1.57 +2.3% closed positive today after opening lower. ($64.50 in afterhours trading)
"WhatsApp may be "cheaper" than most rivals: Facebook paid just $30 per Instagram user at the time (the service had 33 million users when Facebook bought it, compared to 150 million today). Facebook is spending $42 per WhatsApp user. But given WhatsApp's enormous user base, its purchase price might be a bargain compared some of its competitors."
"LinkedIn's (LNKD) share price values that professional social network at $153 per user. Twitter trades at $140 per user, and Facebook is at $123. Even at its latest $2 billion valuation, Snapchat trades at $50 per user. (And Snapchat reportedly turned down a $3 billion offer from Facebook last year.)"
This reminds me of the dot.com bubble era where prices were justified by comparing to other over inflated stocks.
I'm surprised WhatsApp didn't go IPO. With the relative lack of new tech IPOs, I could have seen WhatsApp IPO at a $50 BLN or maybe even $100 BLN valuation, after analysts hyped it up using the same analysis as above. A case can be made that WhatsApp would have kept growing much faster than Facebook and eclipsed Facebook in a few years time.
Facebook FB 69.63 +1.57 +2.3% closed positive today after opening lower. ($64.50 in afterhours trading)