Question: How does a company with effectively zero revenue get a valuation of $700M?
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@mastodonmigration Facebook had a huge valuation well before it had the revenue to justify it. Investors are betting that the user growth will convert to profitable ad revenue in the future.
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Nothing like this.
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@mastodonmigration compare the market value and user base of X to Bluesky. It is comparable.
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Mastodon Migrationreplied to loucovey last edited by [email protected]
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@mastodonmigration Twitter’s valuation went through a similar set of impossible figures in the early years. I think it was over five years before it had a revenue stream, and well over a decade before it became profitable.
This sort of tech investment is a long game.
Also, keep in mind that it’s not so much about what the company does these days, but about what other investors do. You want to buy when the price is low and rising. If everyone sees something happen that gives prominence to the future of that company, then they all jump on the bandwagon to get part of that pie.
And these decisions are all made by algorithms and AI these days anyway.
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M [email protected] shared this topic
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Joe Alexander Marx-Mangionereplied to Mastodon Migration last edited by
@mastodonmigration They could make $700 million in ad sales in no time
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Mastodon Migrationreplied to Joe Alexander Marx-Mangione last edited by
That is not true. Not even close.
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Joe Alexander Marx-Mangionereplied to Mastodon Migration last edited by
@mastodonmigration With no current ads and demonstrated growth people would throw money at the user base. They are already begging to with this valuation.
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Joe Alexander Marx-Mangionereplied to Joe Alexander Marx-Mangione last edited by
@mastodonmigration But I guess a conspiracy is easier to believe?
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Mastodon Migrationreplied to Joe Alexander Marx-Mangione last edited by
Not going to debate it with you. We will see.
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Joe Alexander Marx-Mangionereplied to Mastodon Migration last edited by
@mastodonmigration Mine is based on what Twitter was making in ad sales. Yours is made up by you. We'll see if this conspiracy plays out and it's a limited hangout to be shut down at the next election in 4 years and that matters with Trump taking office.
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Mastodon Migrationreplied to Moof! last edited by [email protected]
Nothing like this. There is no way to mine the Bluesky user base with ads or other monetization schemes that would yield such a valuation, but not going to argue that here with you. Time will tell.
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Mastodon Migrationreplied to Joe Alexander Marx-Mangione last edited by
As you say, we will see.
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Joe Alexander Marx-Mangionereplied to Mastodon Migration last edited by
@mastodonmigration No you said that instead of giving any evidence of this fever dream
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Mastodon Migrationreplied to Joe Alexander Marx-Mangione last edited by
Right, not engaging with you. You disagree with the post. Noted.
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Blurry Bits Photographyreplied to Mastodon Migration last edited by
@mastodonmigration Oh it became pretty evident to me during my short stay on Bluesky
On average, after about ten minutes of browsing -
uBlock will show 100-150 various trackers being blocked. I've seen the count go over 300.Crap sites like RawStory always ran the numbers up, but in the amount of time browsing - They may be one of the top-100 worst data aggregators out there.
They are selling that user base outright. -
Patriciareplied to Blurry Bits Photography last edited by
@BlurryBitsPhoto @mastodonmigration Again we see that users are the "product". Thank you for the documentation.
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Mastodon Migrationreplied to Blurry Bits Photography last edited by
Wow you are right!
Here is a screenshot of uBlock Origin filter log of just accessing the main bsky.app page
Dozens of block notices and they keep streaming in.
In comparison Mastodon generates zero block notices!
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R [email protected] shared this topic
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Julian Andres Klode 🏳️🌈replied to Mastodon Migration last edited by
@mastodonmigration @BlurryBitsPhoto to clarify here
1. most of these calls are repeated calls likely because the API fails to initialize
2. It's a good thing they have built their own analytics rather than use third party solutions
3. You DO NOT KNOW if your mastodon server (or anything else) runs server side analytics. It can't track your mouse cursor movements and all the clicks but it sure can track which posts you read.In summary this is rather privacy friendly compared to baseline.
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@mastodonmigration @moof Moof!'s point is that it doesn't matter what it will really do in the future, only what other investors think it will do. That makes it a speculation play. You may well be right that there will be no revenue, but as long as someone is willing to bet money that it will while user growth is exploding there will be high valuations.
