logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Which Indie Startup Could Go Public Next?

  +Follow December 30, 2013 8:30AM
Share:
Tickers Mentioned:

On Oct. 30, Equities.com’s Michael Teague wrote an article concerning online clipboard/collage service Pinterest’s reported valuation of nearly $3.8 billion, asking how a company that “yet to generate one cent of revenue have the temerity to ask for, and receive, so much money?”

The short answer is: “it’s a red-hot tech property.” Tech has a history of making massive speculative bets. While that might, on the surface, seem reckless and counterintuitive, keep in mind that Peter Thiel bought 10.2 percent of Facebook Inc (FB) for $500,000 before that company had made one thin dime. That investment would go on to be worth in excess of $1 billion.

Then again, there's the Friendsters of the world. Once the hottest property in social media, between 2003 and 2006 Friendster lost 95 percent of its market valuation.

We thought it would be worth looking into some other hot tech properties, and whether their fate is to become the next Facebook, get gobbled up by Facebook – or become nothing at all.

Snapchat

Valuation: $3.5-$4 billion

Snapchat is unique in the world of social media, in that it takes the ephemeral nature of social media and amps it up to the extreme. In Snapchat, users take videos that after being viewed by the recipient disappear forever. How’s that for a fleeting social media experience?

Aside from Pinterest, Snapchat is probably the most ballyhooed  indie startup, with a user base of some 26 million and a novel platform. That valuation doesn’t come without serious questions, however.  Unlike Pinterest, Snapchat doesn’t have revenue. Of course, that’s not always a problem. But justifying their high price tag is a little tricky.

Snapchat, for what it’s worth, are pretty high on themselves. They rejected a buyout offer from Facebook. Then again, Facebook got the more popular Instagram for $1 billion, eventually ratcheted down to $715 million, which is an absolute steal.

Whether Snapchat was wise to hold out or missed their opportunity will become apparent soon. But regardless, at the moment they are probably the hottest property in tech.

WhatsApp

Valuation: $1 billion

Google Inc. (GOOG) was reportedly in talks to buy this company several motnhs ago for $1 billion, and nothing ever came of it. It makes sense, as Google tends to hold high interest in highly technical apps and services whose “wow” factor is high. Google’s traffic navigator Waze, which combines the utility of a traffic avoidance app with a social media company is a prime example.

Whatsapp is attractive because it allows users in different countries to instant message without the standard astronomical fees associated with international communication. And it’s monetization is apparent: after one free year, the service costs a buck a year.

With $350 million active users, that’s a lot of dough. Apart formt he other hot tech properties mentioned here, Whatsapp’s valuation makes the most sense, as it is born of verifiable revenue and not speculation.

Keek

Valuation: $600-$900 million

Keek combines YouTube, Vine, and Facebook into a sort of mish-mash social media platform wherein users upload video status updates called “keeks.”  What keek has going for it more than other hot startups, and especially the Social Media Establishment –Twitter, Facebook, and LinkedIn (LNKD) is massive popularity with young people.

85 percent of Keek’s users are between 13 and 25, a demographic especially coveted by advertisers. The video-sharing feature is tailor made for monetization, and is already perfectly primed for mobile.

FourSquare

Valuation: Approximately $600 million

FourSquare is pretty basic, in that it allows users to “check in” wherever they are, and connect with other users who frequent certain locations. FourSquare is the more established of the big startups, and in the fast-paced world of tech might have already passed its prime, with FourSquare’s Vice President acknowledging back in November 2012 that their growth was slowing and revenue had cooled.

However, FourSquare’s intrinsic tie to commerce makes it incredibly attractive to a buyer from outside the tech sphere, possibly even a credit card company. FourSquare has already started partnering with companies to offer deals to frequent customers, and their future might lie in the arena of using voluntarily submitted  user information, and completing the transfer from a social media company to a marketing research one.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

None.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for goog
Smith's Gradings
20 Oct 14 03:40:33
RT @Yourpersonaltr1: $DIA $QNET 'momo'over $IWM http://t.co/DayJUoubVr $FB $CSTE $SCTY $YY $CMCM $MBLY $DATA $CRM $GOOG $NFLX $TSLA $TWTR …
Dan
20 Oct 14 03:36:48
$GOOG Max Pain is 552.50 for maturity 10/18/2014. Last close = 511.17. http://t.co/i6xB5OESyt
TechNews.org
20 Oct 14 03:21:35
Stock in News: Market Impact Due To Google (NASDAQ GOOG) Earnings $GOOG : http://t.co/aCdc2KNMaI
Andreas Larsen
20 Oct 14 03:19:20
$GOOG Joaquin Almunia think your fear about Googles privacy violation is irrational. http://t.co/Lg2EeS0P8L #Stocks #Finance #EUCommissioner
4-traders.com
20 Oct 14 03:15:04
GOOGLE 'C' : I'm an Avid Googler but Have Yet to Rise to Fame http://t.co/OSiHMtC9pP $GOOG
Bobby Wilbert
20 Oct 14 03:10:13
Google's redesigned Gmail app supports Yahoo and Outlook accounts - $GOOG $YHOO $MSFT http://t.co/CD5W5JZXkb
TechNews.org
20 Oct 14 03:06:00
Active Stock: Facebook Inc (NASDAQ FB) To Introduce The ‘Safety Check’ Feature $GOOG : http://t.co/Z9adnNpsNf
Action
20 Oct 14 03:04:02
RT @Yourpersonaltr1: $DIA $QNET 'momo'over $IWM http://t.co/DayJUoubVr $FB $CSTE $SCTY $YY $CMCM $MBLY $DATA $CRM $GOOG $NFLX $TSLA $TWTR …
YourPersonalTrader
20 Oct 14 03:01:24
$DIA $QNET 'momo'over $IWM http://t.co/DayJUoubVr $FB $CSTE $SCTY $YY $CMCM $MBLY $DATA $CRM $GOOG $NFLX $TSLA $TWTR http://t.co/DDov1nLBPH
Stock Forums
20 Oct 14 02:32:42
$FAST Exchange Click Here: http://t.co/VkIP4DiNmR Also See: $RCH.TO $IWM $EEM $GOOG ~
Forex Trading Unlock
20 Oct 14 02:26:15
$GOOG online stock traders get their trading information here - No Login Required - http://t.co/v1PmOfvh1r
4-traders.com
20 Oct 14 02:05:06
GOOGLE 'C' : Amaechi's Protest Literature http://t.co/TlMNbf8Mq8 $GOOG
The Money Glory
20 Oct 14 02:03:05
RT @SeekingAlpha: Yahoo Q3 2014 Preview: Core Business Remains Challenged; M&A A Potential Catalyst http://t.co/FtjtYJ8Bgf $AOL $BABA $GOOG…
Tushar Kansal
20 Oct 14 01:56:35
RT @anu1122: "@WSJ: The growth of Google's money machine may be slowing: http://t.co/7z3szgku9r $GOOG
Anuradha Shukla
20 Oct 14 01:54:40
"@WSJ: The growth of Google's money machine may be slowing: http://t.co/7z3szgku9r $GOOG
David Ong
20 Oct 14 01:50:02
Yahoo Q3 2014 Preview: Core Business Remains Challenged; M&A A Potential Catalyst $YHOO $AOL $BABA $GOOG http://t.co/ifrmGwjsW2
Quantpost Technology
20 Oct 14 01:37:46
$GOOG $YHOO News: "Yahoo Q3 2014 Preview: Core Business Remains Challenged;…" http://t.co/lPpl8ak6LB Board view: https://t.co/9EPmQkCNnw
Seeking Alpha
20 Oct 14 01:37:46
Yahoo Q3 2014 Preview: Core Business Remains Challenged; M&A A Potential Catalyst http://t.co/FtjtYJ8Bgf $AOL $BABA $GOOG $YHOO
Eric
20 Oct 14 01:12:54
RT @bored2tears: Google reiterated at buy at Bank of America. Price target $600. $GOOG #stocks
Stockaholics
20 Oct 14 00:44:28
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/YX0NLZhRQ5 $TRX $AAPL $GOOG
Talia Escandar
20 Oct 14 00:38:31
RT @WSJbusiness: At Google, heavy spending takes a toll. $GOOG http://t.co/3kchE3oxkJ
Amit Kumar Singh
20 Oct 14 00:32:36
$AAPL Beats $GOOG, $IBM & $MSFT Again In The List of Best Global Brands 2014 http://t.co/6IEe0RVo35 http://t.co/w6MsXpKhD5
TalkMarkets
20 Oct 14 00:31:11
How #Google And #Yandex Treat SEO Differently $GOOG $YNDX http://t.co/oMW1BuMDAI
Amit Kumar Singh
20 Oct 14 00:23:13
Will #Amazon $AMZN Be The Next #Google $GOOG ? http://t.co/8PLCyL64Mz http://t.co/ybUJ0D6hKZ
Stockaholics
20 Oct 14 00:17:20
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/YX0NLZhRQ5 $AMZN $MCOX $GOOG
Stockaholics
20 Oct 14 00:10:03
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/YX0NLZhRQ5 $ERBB $BBDA $GOOG
Stockaholics
20 Oct 14 00:04:06
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/YX0NLZhRQ5 $IBM $GOOG $AAPL
CSIMarket.com
19 Oct 14 23:59:10
Google $GOOG #stock #investing: Google faced contraction in eps, despite strong Other revenues segment resul... http://t.co/rykNzRDVYq
Stockaholics
19 Oct 14 23:57:32
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/YX0NLZhRQ5 $CBL $GOOG $BLL
Fred Fore
19 Oct 14 23:46:38
$GOOG online stock traders get their trading information here - No Login Required - http://t.co/aiAQHyvXG6
Casey
19 Oct 14 23:44:18
RT @theflynews: $GOOG Macquarie continues to recommend Google for long-term holders: Full Story http://t.co/WAFOmtxQn7
David Ong
19 Oct 14 23:38:23
Hey Google, Thanks For Nothing $GOOG $GOOGL http://t.co/6452TiUy5i
FonsieTrader
19 Oct 14 23:16:32
$MSFT A Microsoft smartwatch could appear in weeks http://t.co/kJNslRruCL $AAPL $GOOG
4-traders.com
19 Oct 14 23:15:04
GOOGLE 'C' : Nexus Player passes approval http://t.co/uZM2guKNbv $GOOG
ForexTradingUnlocked
19 Oct 14 23:13:35
$GOOG online stock traders get their trading information here - No Login Required - http://t.co/s6GEGf0uNT
Stock Signaling
19 Oct 14 23:01:17
Movers and Shakers: Trading on Major News: $AMGN $ESI $STI $BK $REGN $URBN $SBUX $GOOG $TXT $HON $GOOGL $HBAN $SNDK $BAX $HCA #stockpicks
4-traders.com
19 Oct 14 23:00:02
GOOGLE 'C' : Tanks for the memory, Brad http://t.co/kWRpccmVu8 $GOOG
John Michael
19 Oct 14 22:29:11
RT @SeekingAlpha: Hey Google, Thanks For Nothing http://t.co/ioyoTq78pe $GOOG #GOOGLE $GOOGL
BUZZ Just-In
19 Oct 14 22:22:48
Don't ignore transactions costs- they add up- US Tech Giants http://t.co/TPs272NYdZ $MSFT $TWTR $AAPL $FB $GOOG #spreadbetting #cfd
Quantpost Technology
19 Oct 14 22:22:42
$GOOG $GOOGL News: "Hey Google, Thanks For Nothing $GOOG #GOOGLE $GOOGL …" http://t.co/fCX4vhUzcE Board view: https://t.co/jOJ3ihOOHo
Seeking Alpha
19 Oct 14 22:22:42
Hey Google, Thanks For Nothing http://t.co/ioyoTq78pe $GOOG #GOOGLE $GOOGL
TANFLITP
19 Oct 14 22:15:35
RT @elitewealthmgmt: Our latest Seeking Alpha article helps you better analyze buybacks, splits and dividend yields! http://t.co/PfGZIrKaRL…
BUZZ Just-In
19 Oct 14 22:07:48
Access curated tweets- high relevancy, less spam- US Tech Giants http://t.co/QnTy4vuEs5 $MSFT $TWTR $AAPL $FB $GOOG
Dusty
19 Oct 14 22:05:47
RT @bored2tears: Google reiterated at buy at Bank of America. Price target $600. $GOOG #stocks
シグレ@ドラマ〜
19 Oct 14 22:02:04
日本では普及しないかも $goog
Stock Signaling
19 Oct 14 22:01:21
Movers and Shakers: Having Earnings Surprises: $STI $BK $TXT $GE $MS $HON $HBAN $BAX $XLNX $COF $GOOG $PM $QLGC $GOOGL $CY #watchlist #spy
Sam Beal
19 Oct 14 21:42:27
RT @WSJ: One analyst predicts Google, not Apple, will be the first $1 trillion company by market cap: http://t.co/SjgeNT5ARJ $GOOG $AAPL
Stock Forums
19 Oct 14 21:11:11
$DD Ideas Click Here: http://t.co/kgkKONPsHL Also See: $GOOG $MCD $VPOR $AMZN ~
Tiger Shark
19 Oct 14 21:01:51
RT @theflynews: $GOOG Macquarie continues to recommend Google for long-term holders: Full Story http://t.co/WAFOmtxQn7
Kristen Anderson
19 Oct 14 20:53:32
RT @WSJ: One analyst predicts Google, not Apple, will be the first $1 trillion company by market cap: http://t.co/SjgeNT5ARJ $GOOG $AAPL
				
				
  +Follow December 30, 2013 8:30AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.