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Old 12-07-2014, 05:59 PM   #25
jammies
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Originally Posted by Canehdianman View Post
I'm not sure I understand your point. Their valuation is determined by what people are willing to pay to invest in them. Its the same as a publicly traded company (only their valuation isn't updated by the second throughout the day)
My point is that the valuation is based on the valuation. Nobody knows how much they really make. They don't have any patents on their business practices. They have no tangible assets, and this is seen as positive instead of a negative. They aren't even the only company in the business. They have all kinds of negative publicity around them that makes their "brand" a suspect asset.

It's a cabal. The old boys' club. Investment bankers creating value out of nothing.

They have a mobile app, customers, and a brand. Is that really worth $40 billion dollars? If it is, Microsoft should be worth 4 trillion, or 40 trillion, or some other absurd number that bears no relation to the return on investment you're going to get from actual profits and dividends from the company.
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