The rich premium attached to Facebook’s recent $50 billion valuation — a high price with respect to earnings that few companies can match — may be justified if the company can grow revenue at a rapid clip, according to analysis by research firm Trefis published by DealBook:
Trefis currently puts Facebook’s worth Read More
A lot of startups these days are achieving massive, billion-dollar valuations based on the big bets investors are taking on them.
Sometimes these companies have real revenue, or profit, like Facebook and Groupon.
But sometimes this enthusiasm is based on how much hype the company has in the press, or how fast it is growing Read More