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by brisance 2919 days ago
Why not since Bloomberg is now pulling numbers out of its ass? A billion MAU with projected $10 billion annual revenue gives a 10x annual revenue valuation. Apple has long surpassed a billion iOS units sold, and annual revenue is $230 billion, give or take, so it should be worth $2.3 trillion. Not bad for an inflation adjusted acquisition worth $654 million.
1 comments
xkjkls 2918 days ago
There are a lot of reasons why a fast growing business like Instagram should be trading at higher multiples than Apple.

Also the value in NeXT came from Steve Jobs, not NeXT itself.

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brisance 2918 days ago
And Apple is not a "fast growing business"? Have you looked into their "Services" category? IG's REVENUE is claimed to be $10 billion. Apple's Services NET SALES was $9.19 billion. In the last QUARTER. So, yes, Apple is a "fast growing business", and is growing faster than Instagram. If Bloomberg was fair, Apple's services alone is a $400 billion company.

Taking a long-term view, IG's revenue comes from advertising i.e. it's a one-trick pony, just like Facebook. Apple is a diversified company; even though iPhone makes up >60% revenue, is anyone with an iota of financial sense going to complain that it's a bad thing?

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