Thursday 11 September 2014

Snapchat’s $10bn valuation: inside the billion-dollar bubble

Title: Snapchat’s $10bn valuation: inside the billion-dollar bubble

This article first talks about how snapchat is a unique app available on iTunes and the apple app store has now become worth $10 billion, in a recent valuation of technology. The article then talks about the promotion of sexting on snapchat, and whether it is safe to use snapchat as they may not have deleted the images but just hidden them where the user cannot see. Then the article mentions that for a new app to become big they need to be innovative in order to outlast the tech giants. There are also three paragraphs on the irrational valuations of applications.
Fact:
Ø  The $19bn (£11.5bn) acquisition of Whatsapp by Facebook valued the messenger app higher than American Airlines, Ralph Lauren and Harley Davidson.
Ø  Snapchat was valued at $10 billion
Ø  Facebook, a 10-year-old company, has been valued at $192bn; that’s 128 times its profits and higher than Coca-Cola, Toyota and Bank of America.
Ø   Google acquired YouTube for $1.6bn (in 2006) there was plenty of bubble-talk already
Ø  last year YouTube’s revenues were $3.6bn and Fortune valued the company at $15bn–$21bn
Ø   43% of all advertising money ($18.4bn) is now spent on search
Ø  Google, Apple, Facebook and Amazon have acquired more than 300 companies; their two older rivals, Microsoft and Yahoo, over 250. Let’s not forget that we are supposedly talking about some of the most innovative companies in the world.


This article brings up many good points in regards to privacy online, as it states that there are privacy issues when it comes to major tech giants. In regards to snapchat the concern is that the snaps haven’t actually been deleted but saved in a private area. In my opinion, it’s a violation of privacy and should be dealt with to keep all our information private.  









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