Title: Snapchat’s $10bn valuation: inside
the billion-dollar bubble
This
article first talks about how snapchat is a unique app available on iTunes and
the apple app store has now become worth $10 billion, in a recent valuation of
technology. The article then talks about the promotion of sexting on snapchat,
and whether it is safe to use snapchat as they may not have deleted the images
but just hidden them where the user cannot see. Then the article mentions that
for a new app to become big they need to be innovative in order to outlast the
tech giants. There are also three paragraphs on the irrational valuations of
applications.
Fact:
Ø The
$19bn (£11.5bn) acquisition of Whatsapp by Facebook valued the messenger
app higher than American Airlines, Ralph Lauren and Harley Davidson.
Ø Snapchat
was valued at $10 billion
Ø Facebook,
a 10-year-old company, has been valued at $192bn; that’s 128 times its
profits and higher than Coca-Cola, Toyota and Bank of America.
Ø Google
acquired YouTube for $1.6bn (in 2006) there was plenty of bubble-talk already
Ø last
year YouTube’s revenues were $3.6bn and Fortune valued the company at
$15bn–$21bn
Ø 43%
of all advertising money ($18.4bn) is now spent on search
Ø Google, Apple, Facebook and Amazon have
acquired more than 300 companies; their two older
rivals, Microsoft and Yahoo, over 250. Let’s not forget that we
are supposedly talking about some of the most innovative companies in the
world.
This
article brings up many good points in regards to privacy online, as it states
that there are privacy issues when it comes to major tech giants. In regards to
snapchat the concern is that the snaps haven’t actually been deleted but saved
in a private area. In my opinion, it’s a violation of privacy and should be
dealt with to keep all our information private.
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