Seeing the comments below., the similar questions could be raised for a even bigger bandwidth beast. Youtube. And imgur is essentially the Youtube of images.
And speaking of profits, 140 Characters is barely generating any revenue despite it would be the only service of its size consuming the least (hosting) resources.
So I guess investors do not see the value in profits rather in popularity when it comes to crazy start-ups. Considering Instagram which got acquired for the ‘notorious’ 1 Billion. If we use the same mathematical formula, I guess imgur is worth at least 2x of Instagram.
Which really make one question the valuations that are out there. If reddit isn't at least a billion dollar company by this measure I don't know what is... Yet they continue to struggle to make operating expenses.
Well yeah, but they arguably should be part of the valuation model. I realize there's a lot of speculation, past investment history, etc. involved in the valuation, but at some point how much money a company is making and can realistically make should be part of the figuring.
And speaking of profits, 140 Characters is barely generating any revenue despite it would be the only service of its size consuming the least (hosting) resources.
So I guess investors do not see the value in profits rather in popularity when it comes to crazy start-ups. Considering Instagram which got acquired for the ‘notorious’ 1 Billion. If we use the same mathematical formula, I guess imgur is worth at least 2x of Instagram.