Start the conversation
On Wednesday the makers of photo-sharing/messaging app Snapchat announced they were seeking a new round of funding – one that would value Snapchat at a whopping $19 billion.
That's more than multinational aluminum maker Alcoa Inc. (NYSE: AA), a company with 60,000 employees in 30 countries. Snapchat on the other hand has only 40 employees and a questionable revenue model.
It's not the only popular company with a valuation that sounds fishy. Uber, the on-demand taxi service company, is valued at $40 billion. And Pinterest, the digital bulletin board, is valued at $11 billion. These are all privately held companies rumored to hold an IPO later this year.
The big question now is if these numbers are inflated on hype, or are they based on legitimate profitability?
Money Morning Technical Trading Strategist D.R. Barton sees some of these valuations as certainly "bubblish." Find out which company has the worst "bubble valuation," and which one is most likely to earn its value:
We Know One Thing for Sure… Apple stock is not overvalued. Even as the stock continues to climb this year and analysts revise their price targets, they are still aiming too low. Even at their highest estimates, analysts are lowballing Apple's true potential. Some have even deemed Apple stock a "Sell." Here's why they are wrong, and what they are leaving out of their calculations…