Looking at Snapchat, Instagram should be worth $34 billion.
Looking at Line, WhatsApp should be worth $51 billion.
This cuts $60 billion off of Hadi Orabi's valuation of Facebook.
Facebook is losing popularity among teens. Instagram is less profitable than Facebook, so it is a bad trade off for them to use Instagram over Facebook.
The coming recession, which may have already started, should impact Facebook's earnings and halt the stock's momentum over the nest 2 or 3 quarters.
As I have stated since selling Facebook (NASDAQ:
In Seeking Alpha contributor
There are two more things to consider. The first is that Snapchat is more expensive than past IPOs in terms of its revenue multiple. As you can
Valuing Instagram in relation to Snapchat is also aggressive because each Snapchat user spends a couple more minutes than each Instagram user per day. The latest information I can find is shown below from August. The
I would also like to improve Hadi Orabi's valuation of WhatsApp. He comes up with a valuation of $61 billion by simply valuing its users at the same rate as when the acquisition took place. He then uses the most recent estimate for the number of monthly active users on the app which is about 1.1 billion. Instead of doing that, I will use Line's valuation per user to come up with a valuation for Whatsapp. Line has