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RE: STEEM grows to $10 !!!! Valuation of steemit versus valuation of reddit
So, Reddit is valued at 100x revenue. Yeah, that seems totally reasonable...
So, Reddit is valued at 100x revenue. Yeah, that seems totally reasonable...
FB was approx $12Billion revenue in 2014 and market cap approx $240Billion.
20X multiplier.
Reddit has 1/3 as many users, market might reasonable assume Reddit could be 1/4 as successful as FB at monetizing those users with ad revenue.
Divide FB market cap by 12, and you get $20Billion as potential market cap for Reddit, assuming it is only 1/4 as successful at monetizing with ad revenue.
With Reddit priced at $2B, you only have to assume Reddit is 1/40th as effective at monetizing ad revenue as FB.
That seems like a fairly low hurdle.
100X revenue is not an extreme valuation for social media company that is just starting to make the transition to monetizing their users.
STEEM On!!
DaveB
Thanks for doing the numbers. Although, I think FB at 20x is probably ludicrous as well.
We'll all be able to chat about how it ended 10 years from now, after the next crash.
There will be a next crash. That is certain.