Breakingviews

Mini-me tech bubble is mere shadow of 2000 excess

May 5, 2014

The run-up may have paused, but dozens of companies are in line to float, hubris is rampant, oddball metrics abound, and revenue-free startups are still worth fortunes. Even nerd culture has become hip. The latest internet boom is as absurd as the last, but it’s far smaller.

How on earth can Facebook justify WhatsApp price?

February 20, 2014

It takes extraordinary suspension of disbelief – and a new Breakingviews calculator – to see how the social network can bring the messaging startup’s $19 bln valuation in line with its own. WhatsApp must double its user base and persuade them to pay more. It’s a big stretch.

Valuing Tencent’s chat app remains an act of faith

March 20, 2014

The Chinese web giant has finally shed some light on its popular messaging platform. Revenue figures show WeChat is morphing from an app into a business. But sparse details on costs and regulatory risks make future earnings anyone’s guess. Valuations are based largely on hope.