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back to article Profitless scrapbooking site Pinterest adds over $1bn to its book value

Kittens'n'cupcakes site Pinterest has won another $225m in funding that values the firm at an actually incredible $3.8bn. Earlier this year, the scrapbooking site got a whopping injection of $200m, which put the profitless firm at a valuation of $2.5bn. That means that a site which has made no money and consists of endless …

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WTF?

visible-from-space bubble

that is all.

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Holmes

Re: visible-from-space bubble

Actually, my dear colleague, I do think the pinterest particle is the quantum of the government inflaton field. I predict a moneyless pension decay followed by a regulatory shower.

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One thing in Pinterest's favour is that it attracts a primarily female audience so might be appealing to certain advertisers. However, many of the audience are probably on facebook and hence being targeted already! Therefore, probably only a minor advantage so the valuation looks a bit suspect to me!

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And the royal mail

that employs 1000s, owns jet air planes, Lorries, Cars, Bicycles and massive distributions center's is worth how much again?

People (speculator) maker value out of thin air, didn't this happen before, I seem to remember bubble of some sort being used.

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Re: And the royal mail

The band-wagon is rolling, is there time to get on-board and off again with a bag of loot before the wheels come off?

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Joke

Re: And the royal mail

To be fair, this Pinterest thing doesn't seem to be on strike at least once a year and bend your photos through the letterbox.

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Anonymous Coward

Re: To be fair

so it doesn't have strikes or bend your photos, but that doesn't mean it has value. Any value.

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Re: And the royal mail

See, the Royal Mail's mistake was charging money for their services. As soon as you try to make a profit, it becomes very clear to people just how much your business is worth.

In the New New New Economy, profit is something you chase after your IPO. You see, investors nowadays are very much in the mindset that information about the value of your business is totally optional. They'll take it if it's handy, but if it's not then it won't stop them.

And if you can't quite stagger to IPO under your own steam, Yahoo still has money left to bail you out. They're always looking for more repositories of cat pictures to slap ads on.

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Re: And the royal mail

> People (speculator) maker value out of thin air

That's not how it works, Mr Bangalesh Syntax.

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Translation please...

"We hope to be a service that everyone uses to inspire their future, whether that's dinner tomorrow night, a vacation next summer, or a dream house someday," top dog Ben Silbermann said

Anyone able to translate this for me? I can get by in marketing bollocks, at least I can order a beer, dinner or book a hotel room - but I'll admit I'm not fluent. But this one has me baffled.

Is he saying that Spartacus see cupcake, Spartacus think, "Ooh shiny! That's dinner sorted out." Then... Profit...

Or possibly, Spartacus see super-posh-yummy-house, Spartacus thinks: "Ooh shiny! If I go on a crime spree, or become a drug dealer (or investment banker), then I too can afford this lovely house. Yippee!" And... Profit...

Or is he in fact talking utter drivel? Answers on a postcard please, to: I Ain't Spartacus, Duneatincake, 1 Sunkissed Drive, Grand Cayman. I'm sure the Post Office will be able to redirect it to my hovel in a small market town in rainy England.

And to think, I thought Twitter was over-valued. They actually make money! Well OK, they lose money, but they have revenue coming in, so they can at least dream about it. Facebook make a profit. I'm going to buy some shares in it now, they must be modern geniuses!

Bugger me! Everyone agrees. Facebook shares are now apparently worth $52.84.

I'm forever blowin' bubbles. Pretty bubbles in the air.

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Re: Translation please...

The key is in "inspire their future", i.e. their future self will look back in horror at how much time they wasted with liking cupcake photos and from the induced psychological recoil will go on to create world peace and happiness.

Or (just possibly) it's drivel designed to cover the VCs pumping up the valuation now before cashing out post-IPO, Facebook-style. After all the philosopher fleeing the bear only has to outrun his friend, and you the early investor here only have to find a bigger fool before the music stops.

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Bigger idiot theory

Stock price has nothing to do with real value any more, it is just based on how much you think you can sell the stock to a bigger idiot for later on.

“The market can stay irrational longer than you can stay solvent.” - John Maynard Keynes

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