If you want some justification, read this http://www.shopify.com/blog/6058268-how-pinterest-drives-eco... TL;DR - Pinterest drives as much ecommerce traffic as twitter with significantly more purchase intent
twitter drives any e-commerce traffic!?
Pinterest Raises $100 MM at $1.5Bn Valuation
61–70 of 130 posts
Re: Pinterest Raises $100 MM at $1.5Bn Valuation
#62Earlier quoted context omitted.
That $15 billion number was inflated. It was valued at $10 billion in January 2009, at which point it had "made a penny directly in advertising". It also had 175 million users the following month, or 17.5x the number of users of Pinterest. http://online.wsj.com/article/SB124335674958054943.html http://www.insidefacebook.com/2009/02/14/facebook-surpasses-...
So, pricing it around 1/10th the price for 1/17th the users is execessive, but it should be worth at least a billion, right?
All else equal, maybe.
You know what screams "bubble" to me? Everyone defending valuations by comparing the company du jour to Facebook.
It's like arguing that Webvan wasn't overvalued because Amazon.com has been successful. Unless a seriously meaningful connection between Facebook and Pinterest is drawn, the comparison is meaningless.
Re: Pinterest Raises $100 MM at $1.5Bn Valuation
#632005: Yahoo acquired Flickr for $35m, Delicious for $15-20m; 2012: Pinterest is now valued at $1500m, Instagram at $1000m. I'd rather have 75 del.icio.us's than 1 Pinterest but.. I readily admit I'm getting old ;-) So my question is, did the folks 7 years ago get a bad deal or are the valuations now over the top?
Delicious was far smaller than pinterest is today. And unlike pinterest, it did not have an excellent monetization option attached. Not really comparable.
Any sense of how big pinterest currently is?
Re: Pinterest Raises $100 MM at $1.5Bn Valuation
#64Well I'm going to head off the predictable and boring "bubble" comments and say this: Pinterest has real value and a clear path to monetization through affiliate and/or advertising revenue. It's really a stupidly simple idea (essentially scrapbooking on the Web) executed incredibly well. Is it worth $1.5B? I don't know. I would say it's definitely worth more than Instagram for whatever that's worth (not a lot). I gue…
I do agree with you - this possibly has real potential. BUT I think they need more time to answer these questions: - Is this a fad, or is Pinterest here to stay? - Can they really pump up revenues the way they think they can? And can they do it fast? It's like buying condoms before the first date. (Sorry for the inappropriate inference.) I just feel like they needed more time and history before pulling in these types…
It's like buying condoms before the first date. (Sorry for the inappropriate inference.)
Am I the only one that thinks that's a good idea? Seriously, people in cars cause accidents, accidents in cars cause people.
Re: Pinterest Raises $100 MM at $1.5Bn Valuation
#65Pinterest got this valuation because their story is that it's related to ecommerce. The thing is it doesn't seem like that's turning out to be very true at all. It seems like what has made Pinterest really successful is that it's basically 9gag/tumblr photo/meme sharing. If you look at their content it's mostly of that type. Products seem to be a relatively tiny portion of the content. I'm sure they can make a nice c…
A counterpoint: Lately there's been a lot of discussion about some difficulties Facebook has had in the advertising sector. Jason Bigler of Google was snarking about this earlier today. [1] I realize this is largely because all the snarks come out of the woodwork before an IPO, but to a certain degree - they're right. Facebook just isn't a place that puts people into a "transactional mindset." People go to interact,…
But are people posting photos of the kinds of things that sell in large volumes and generate a lot of revenue? The attraction of a lot of these sites is that they initially feel like a cosy insider community but that feeling fades fast as they become mainstream. This is happening to FB already.
Are people going to be posting and clicking on pictures of ketchup or cleaning products or life insurance policies?
Re: Pinterest Raises $100 MM at $1.5Bn Valuation
#66Well I'm going to head off the predictable and boring "bubble" comments and say this: Pinterest has real value and a clear path to monetization through affiliate and/or advertising revenue. It's really a stupidly simple idea (essentially scrapbooking on the Web) executed incredibly well. Is it worth $1.5B? I don't know. I would say it's definitely worth more than Instagram for whatever that's worth (not a lot). I gue…
"Essentially scrapbooking on the Web" A better analogy is probably delicious for women, at least in terms of having a mental framework to estimate the value.
+1 scrapbooking is a fad, bookmarking is a sign of interest.
Re: Pinterest Raises $100 MM at $1.5Bn Valuation
#67If you want some justification, read this http://www.shopify.com/blog/6058268-how-pinterest-drives-eco... TL;DR - Pinterest drives as much ecommerce traffic as twitter with significantly more purchase intent
twitter drives any e-commerce traffic!?
There are a lot of affiliate and spam bots...
Re: Pinterest Raises $100 MM at $1.5Bn Valuation
#68Well I'm going to head off the predictable and boring "bubble" comments and say this: Pinterest has real value and a clear path to monetization through affiliate and/or advertising revenue. It's really a stupidly simple idea (essentially scrapbooking on the Web) executed incredibly well. Is it worth $1.5B? I don't know. I would say it's definitely worth more than Instagram for whatever that's worth (not a lot). I gue…
The other interesting part about Pinterest is that they mostly gained traction outside of the traditional early adopter segments. Not sure any what's the right way to value this kind of company: obviously if it was an established public company, a $1.5b figure might be scary (as far as I understand Pinterest does not yet have revenue). However, it isn't: venture capitalists valued it this high, in the hopes that ther…
There may be signs it's not a bubble, but is traffic one of them? Part of the deal now is that it just takes fewer people to run a startup than it did then.
Re: Pinterest Raises $100 MM at $1.5Bn Valuation
#69Earlier quoted context omitted.
>> did the folks 7 years ago get a bad deal or are the valuations now over the top? More likely Option 3: Vastly more people are connected to the Internet, which now has far superior paths to monetization.
versus 2006? i doubt it's more than double the number. maybe it's the comfort level of the audience that helps with monetization?
Comfort level is a good point. I think a lot of that is directly attributable to Facebook, oddly enough.
I'm fairly certain Pinterest never would have taken off if most of their users didn't have a couple of years of Facebook under their belts.
Re: Pinterest Raises $100 MM at $1.5Bn Valuation
#70For everyone talking about a bubble, 1.5B might actually be low. If you agree that Facebook is worth about 100B, according to Alexa, Pinterest is about 1/20th of the size by uniques (by pageviews it's about 1/30th). 1/20th means that Pinterest should be valued at about 5B, not 1.5B. http://www.alexa.com/siteinfo/facebook.com http://www.alexa.com/siteinfo/pinterest.com
Alexa traffic measurements are too unreliable to base any kind value estimation on.