Recently, professional networking website LinkedIn went for initial public offer (IPO) and the overwhelming response – which doubled the company’s valuation over night – has only boosted the confidence of other Internet ventures. However, the developed scenario is forming a much hyped tech bubble where every Internet venture – especially social networking properties – have got significant contribution.
Companies are securing more and more funding, revenue is surging with steady pace and growth rate is appreciable but fails to create ‘WoW’ effect on revenue books. Though there are few which have full potential to justify its valuation, many are also over-valued just because of brand value. And Twitter leads this way.
LinkedIn, which accounted $200 million in revenue last year, secured $9 billion valuation just few days back when it went for Initial public offer – probably the highest price and revenue ratio in the world.
Interestingly, Twitter cut the celebration cake with the highest price and revenue ratio – though it has not been tested on public interest. With just $150 million in revenue last year, Twitter is currently being valued worth $7.7 billion in private market – an obvious over-valued company ever.
Here is an interesting infographic from GPlus, which highlights the top Internet properties’ growth, revenue and current valuation. With so much of money to pour, an obvious debate has been triggered “whether another tech bubble is taking shape” and much more important “Are we ready for another Internet bubble blast similar to 11 years back?”
You are the best to judge the same and react. Here is a competitive analysis on few major Internet ventures which will have a major contribution in future of Internet.