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[–] 2 points 3 years ago* (1 child)

Valuation is usually based on potential revenue, not actual revenue. A $2 billion valuation would have been about $50 per user. It seems reasonable Stack Exchange should be able to make that much money per user somehow over the entire future existence of the company... if it's run well. Which doesn't seem to be happening from where I'm sitting.

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  • [–] 1 point 3 years ago

    Valuation is usually based on potential revenue, not actual revenue

    How similar this is to how capitalists look at natural "resources". "This website[wetland] sure is great. Lots of people[animals] are loving it. And it's a vital part of the development[water] cycle... But it's just not making me any money!"

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