Why is it so bizzare? Do you think that Palau has enough people engaged in producing goods or services that deserve more than their current GDP?
I think comparing the valuations of a US company HQ'd in one of the most expensive cities in the world, that has created a tool that is used by nearly all organizations around the world for communication is well worth the crazy valuation.
I’m not talking about their supposed $16b value. I’m wondering where the money they’re actually spending is going.
They’ve lost nearly $150 million in a year. How? What does that money even go to? Even paying their devs incredibly generous wages and benefits, server costs, advertising, deals with businesses, etc, I can’t imagine the losses being that big. It’s insane amounts of money to burn through.
That doesn’t seem like that big of a number for a large corporation that Slack is now. Tesla had a net loss of 700mm[1] last quarter. Their business is more capital intensive for sure but still. Just looking at a 150mm net loss and saying it’s a big number doesn’t tell you much.
Since when has a company making poor over-priced decisions ever justified a better valuation? It's the complete opposite.
If Airbus decided to pay twice as much for planes would you say they should be valued higher?
While there is intangible benefits that come from deciding to setup shop in one of the most expensive cities on Earth I'm far from convinced a messenger app company couldn't thrive elsewhere.
What they offer is not unique nor difficult to create. Doubt they'll ever manage to pull in $1B a year to justify that price, the required business model for it would have their customers looking elsewhere overnight.
I think comparing the valuations of a US company HQ'd in one of the most expensive cities in the world, that has created a tool that is used by nearly all organizations around the world for communication is well worth the crazy valuation.