You can learn a lot about the valuation of a company by comparing it to the valuation of other companies. That is especially true in the land of social media stocks where revenues and earnings sometimes don’t exist.
Snapchat, a social-media startup that only recently started generating revenue is valued at $19 billion. Don’t know what Snapchat does? Me either.
According to Quartz, Snapchat allows users to share disappearing photos. Hmm…I guess that qualifies as innovation today.
The table below comes from Quartz. It compares Snapchat’s market value to companies with similar market valuations. Apparently, Snapchat is such a valuable service that it has about the same value as one of the world’s largest aluminum producers, Consolidated Edison (the utility of America’s largest city), and Mosaic, a producer of a vital and finite resource that is essential to life. Disappearing photos or a nutrient vital to life on earth. Six of one half dozen of the other I guess? Sound reasonable to you?