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Facebook is overvalued. But the numbers 1 and 2 in a market are much more valuable than the rest. If you buy number 1 you are the market leader and if you buy t
by idea 19y ago
Facebook is overvalued. But the numbers 1 and 2 in a market are much more valuable than the rest. If you buy number 1 you are the market leader and if you buy the runner up you can fight for market share or buy some smaller players later on. The number 3 is only interesting if the company can quickly gain a lot of market share. Often those companies are sold off again if that does not happen.
- mattmaroon 19y agoFacebook also has a much better revenue model than providing support for open source software.
- sanj 19y agoHow do you figure? $3/user/year doesn't knock my socks off.
- abc3 19y agoBoth of the above comments refer to cliches that have been repeated so often that it's tempting to believe them. We read all the time about number 1 or number 2, but companies survive or die based on profitability and fiscal responsibility, not market position. Also, revenue model != revenue or, more importantly, earnings. And whether a company has a good revenue model is at best peripherally related to how accurately it's valued.