Friday, 22 July 2011

Social Media Company Valuation

"Ecosystem economics"? I'll add that the the lexicon of pre-crash bad business ideas along with the analyst esposal (pre-dot.com crash) that you can value online companies on a "per-click" basis. Amazing how the head of tech investment firm can ignore that when Linkedin has a P/E Ratio of 1400 (....over 50 is considered a risky long term investment and around 12-25 is the FTSE 100 norm to put it in context...) thats a rather large unsustainable bubble (and soon to be crash) warning sign. Fortunately Rory Cellan-Jones seems to be a bit more sensible.



What interests me about this is, everyone with experience of the dot.com boom, everyone with a sensible business head, and indeed those more vocal bloggers out there already are shouting the word bubble, yet investors are still piling money in hand over fist. I think perhaps the worst thing I can say about this is; we're investing like it's 1999.