Social Media Valuations Could Be Sign Of Another Tech Bubble Burst [Infographic]

Bubble Burst InfographicFacebook currently rakes in $2 billion per year which has created a secondary market valuation of $75 billion for the social network or the equivalent of 37.5 years worth of revenue. Facebook however has an advantage over other social media company’s, they are everywhere from major websites to local stores where you can buy Facebook Credits.

So what about other social media companies?  For example, LinkedIn was recently valued at $9 billion, despite earnings of just $200 million per year and an advertising structure that looks less than desirable? Or Twitter who’s own advertising efforts have left the company with just $150 million in revenue per year, yet an evaluation of $7.7 billion at a time when many of their “sponsored Tweets” attempts have shown lower than expected/desired Click Through Rates (CTR’s).

We can also look at Groupon which is valued at nearly $25 billion with yearly earnings of $760 million to see that the valuation of company’s are out of proportion to their values.

Social media site G+, which is made up of sector professionals and academics has posted the following Infographic about social media valuations. They don’t draw conclusions via the Infographic but it’s a real eye opener when you place these online company’s against brick and mortar organizations who have released their own IPO’s.

Here’s the Infographic:

See Also
Abstract Transformation

 

Social Media Valuations

Picture of James Johnson

James Johnson

RECENT ARTICLES

TRENDING AROUND THE WEB

7 things highly successful people regularly do before breakfast, according to psychology

7 things highly successful people regularly do before breakfast, according to psychology

Global English Editing

People who say “I’ll come back” to store attendants but never do usually have these 7 traits

People who say “I’ll come back” to store attendants but never do usually have these 7 traits

Global English Editing

7 things you stop tolerating when you start loving yourself

7 things you stop tolerating when you start loving yourself

The Vessel

If you need the TV on to fall asleep at night, psychology says you probably exhibit these 6 traits

If you need the TV on to fall asleep at night, psychology says you probably exhibit these 6 traits

Global English Editing

Boomers who remain socially fulfilled tend to follow these 7 habits, according to psychology

Boomers who remain socially fulfilled tend to follow these 7 habits, according to psychology

Global English Editing

If a man no longer feels love, he will usually display these 8 subtle behaviors

If a man no longer feels love, he will usually display these 8 subtle behaviors

The Vessel