Tulipmania!

So Snap is worth $24 billion, eh? That’s pretty good for a weird company that’s losing $500MM on revenues of $400MM. Its balance sheet in the S-1 (page F-20) shows around $100MM in total PP&E, of which $23MM is computer stuff and the rest is real estate and furniture, presumably all that beachfront property in Venice, CA. Oh, yes, an acquaintance of ours said his broker could get him $500K of the stock but wanted a 10% commission. Tulipmania!

One Response to “Tulipmania!”

  1. feeblemind Says:

    Related:

    A quote from Stephen Green at Instapundit:

    “The root of Twitter’s troubles — up to and including all the Social Justice Warring — stems from one fatal conceit. Microblogging is a low cost/low margin business, which Twitter’s management has spent the last several years trying to over-monetize and overstimulate into a multibillion-dollar Facebook competitor.

    Last year I asked a sysop friend who runs data centers for a living what it would cost to run something like Twitter, but streamed down. His ballpark guess was that he could do it for two million dollars annually. That would be an easy sum to cover with banner ads, data mining etc, with enough left over for a modest profit — provided the investors didn’t expect that by some miracle the service could ever be anything more than that.

    I suspect Twitter spends more than two million each year just on corporate extravagances.”

    https://pjmedia.com/instapundit/258690/#respond

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