Looking at today’s infographic makes me worry. As a tech professional myself, I should understand the power and value behind a user-base. Although, after noticing how slow traditional American power-house brands gained value, I am worried even more about the tech bubble.
Snapchat notoriously denied Facebook’s $3 billion offer when they were only three years old. At age four, Snapchat could possibly be valued at $10 billion. This type of growth would be completely unexplainable to a businessman pre-digital age. “What do they sell?” She’d ask. Well, they sell an incredibly small amount of ad space and also some data they mine about their users. Their yearly revenue is arguably nothing.
“How is that possible?” They’d ask. It is all valued at number of active users. It’s like if Starbucks was to stop charging for coffee. They would not make much money, but their number of customers would skyrocket.
I do still believe there is a tech bubble at the moment. Do I think it is going to burst and drag down the nation’s fastest growing industry? No. The only was I see it going is that fewer college kids will be offered billion dollar buy outs until a most traditional money stream is established. [via]
