This Is Your "New Economy": These 10 Startups Are Valued At $156 Billion On $4 Billion In Revenue

Tyler Durden's picture

If one had to summarize the "new economy", which supposedly this time is different than the last time the US had a "new economy", in just one chart, it would be the following one which lists the 10 biggest "unicorns", or startups worth more than $1 billion, a list headed by Uber (which last week reported its latest record valuation of $51 billion, up from $17 billion exactly one year ago), and continuing with names which are more a marketing gimmick than an actual business model.

A few quick observations: the top 10 highest valued companies have a combined private valuation of $156 billion, on just about $4 billion in revenues and employ a whopping 19.5 thousand people.

In other words, the universe's combined historical Price/Sales ratio is 39x and each employee is worth about $8,000,000.

Here's hoping to the absolutely astronomical growth that these privately priced to perfection companies will need in order to justify their ridiculous valuations... just as the Fed prepares to hike rates and lead to what many know, but won't admit, will be a recession in a few years (if one hasn't started already).

Source: Economist

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Dubaibanker's picture

Your money is my money ....and ....my money is ....your money...and then...it's goooonnne.....Did you see that? It's gone! :)

Just like that!

SickDollar's picture

the entrie global economic system is a big joke

Everyone knows a RESET is due

 

Occident Mortal's picture

Square looks good to me.

 

Six times revenue is high for something so new, but perfectly sensible given the base rate is 0.25%

Arnold's picture

Square is very handy for the table top/ flea businesses.

Fees are  insignificant if your crocheted afgans are moving.

NidStyles's picture

The first two ones I can see being valued like that, they actually provide value to the economy and are still growing rapidly.

Manthong's picture

Revenue ??    Sheminue..

Get a clue..

This is not  even closely related to legit economics.

……… it is criminal financialization and the reason for the monstrous inequality  

It’s a german and jewish thing……

.

BTW.. in 1776, when the Founders declared Independence..; who owned England???

.

Google Rot Schild

 

 

realmoney2015's picture

Those are just great companies. They are the wave of the future. We all know that one day they will actually be extremely successful and actually be worth that value. This is no bubble, this is just getting in early (sarcasm).

Buy silver y'all!

Bunga Bunga's picture
A Hack Turns the Square Card Reader Into a Skimmer

1. We can turn a new Square Reader into a credit card skimmer in under 10 minutes - and it will still physically look exactly like a Square Reader. The attack allows malicious merchants to gather and subsequently sell user credit card information. This attack does not store swipes, but does store the victims credit card information.

2. We have identified a method where, for every unique swipe of a customer’s credit card, a merchant is able to conduct a new transaction at a later point in time, even long after the customer has left and unbeknownst to him or her. Square has the information needed to fully prevent such attacks as they’re attempted, but due to complexity has opted not to do so. This attack stores swipes for later use.

http://gizmodo.com/a-hack-turns-the-square-card-reader-into-a-skimmer-17...

 

gatorengineer's picture

square will get bought.....  Paypal is the one that is in trouble, their 3% scam is due to get crushed by Crapple pay, google pay, etc......

Ebay also desperately needs a competitor.

johnnymustardseed's picture

I have never undeerstood the valuation of stocks.. twenty times earnings is a fair value of a stock. WHY?  That means 19 levels of made up money. Crrazy. The whole thing is a giant Ponzi

Occident Mortal's picture

It's to do with positive carry.

 

If you borrow money at less than 5% then buying equities at less than 20 P/E has a positive carry.

Of course in reality the status quo changes all the time, so there is a risk that the earnings will fall, or that the price of the equity will change meaning you cannot recoup in full.

 

It is the interest rate that determines the valuation, because the interest rate determines the cost of capital.

The lower the cost of cpaital the greater the valuations.

jerry_theking_lawler's picture

Interest rate is also RISK...so, since rate is being manipulate downward, risk isn't being applied to capital appropriately. This creates crazy valuations and ultimately will end badly.

Grinder74's picture

The same logic is used for:

- 18 is perfect adult, but 17 is totally helpless child !!!!11!11!!!

- two dudes marrying is A-OK, but a dude wanting to marry two chicks is soooooo evil !!!!!1!!!!11!!!

 

 

 

cheech_wizard's picture

I figure I am going to ask every single woman in the world to marry me. Why not? Everything else in the world is upside down, backwards, and lacking any sense of a direction on a moral compass.

Standard Disclaimer: They can help me make the Guiness Book of World Records.

 

gmrpeabody's picture

Start with the rich ones...

Perfecthedge's picture

Excellent points Grinder74!  I always wondered about these too.  Whenever I mention, that we should legalize Polygamie (as next level of freedom), people look at me, like I mentioned fucking a dragon or something.  The very same people that approve gay marriage (which, personally I have nothing against - I am straight - but think that you should not stop here.  Rights are Rights!)

 

Countrybunkererd's picture

Everything is upside down.  Look at the U.S. Drug War-TM.  that does nothing more than set up deep pocketed murders with global reach.  If a man wants to put another man inside him why can't a man put some smoke or whatever inside as well?  Just sayin.

Tallest Skil's picture

Mental illnesses don't have rights. Reassess your delusional beliefs.

lordbyroniv's picture

Maybe the lord will send death angels to kill every Progressive Democrat

 

Because thats what its going to take to give everyone else a shot

 

Cousins??????  http://consequenceofsound.net/2015/08/amy-schumer-joins-her-cousin-senat...

Now it all makes sense

 

MalteseFalcon's picture

If every progressive Dumbocrat vanished, who would read the nightly news?

tarsubil's picture

Haha, I figured Amy sold her soul to get 15 min of fame. Guess not. Didn't she make a movie about how she's some kind of man killer? Right. You can get whatever you want if you're in the club.

KnuckleDragger-X's picture

The reset is going to be painful and I get the feeling overpopulation won't be a problem in a few years.....

Nolde Huruska's picture

What we really need is a reboot of fuckedcompany.com

This is it's picture

Heyy mann, whatever works mann.

doctor10's picture

The commodity in shortest supply in the whole world right now is

"good, real, cash-flowing collateral"

 

40:1 is a pretty damn good cash premium to pay for some crappy cash flow.

thunderchief's picture

But please, please, please don't buy physical gold and silver.

They are just pet rocks and door stops.

overmedicatedundersexed's picture

shell co's for the HLS/NSA/CIA..think google/facebook is not run by them? then i got bridge somewhere to sell you.

Jayda1850's picture

"..just as the Fed prepares to hike rates and lead to what many know, but won't admit, will lead to a recession in a few years (if one hasn't started already)."

I REPEAT THE FED WILL NEVER HIKE RATES!

NeedleDickTheBugFucker's picture

+0.25%

any rate hike = immediate collapse

Vendetta's picture

+1000   They might do a modest .25 or .5% bump but will immediately (< 3-6 months) bring it back down. Its laughable that any significant change in rates will occur.

tarsubil's picture

Doesn't matter. If they keep rates the same for a long enough time, there will be a collapse. They are better off raising them and then lowering them than going negative next time everything falls back to Earth. Or not. It doesn't matter. The bubble has been blown and there is no way to safely deflate it.

HowdyDoody's picture

A cat valued my startup at 1 treeellion dollars.

Countrybunkererd's picture

I valued my cat's litter box at about the same...imagine the photo poops... i mean ops!

Dr. Engali's picture

It's different this time.

firstdivision's picture

Of those, Square is he only one that I woul risk money on. 

falak pema's picture

Thats 'cos you're not HIP ! 

NidStyles's picture

Really? It's growth and actual market share is horrid. 

firstdivision's picture

Yes, but if you held a gun to my head and told me I have to play $10 on one, Square is the one I'd pick. 

BeerMe's picture

Square is good for the farmer's market I guess...

Bill of Rights's picture

From the WHAT THE FUCK FILES!

Shocking! Kentucky Officer Caught On Camera Handcuffing Disabled Kids

https://www.youtube.com/watch?v=D_nNY8IVe8k

 

Two northern Kentucky women have sued the Kenton County sheriff and one of his school resource officers for placing their two disabled elementary school children in handcuffs.
The handcuffs were too large to fit around the wrists of the 8-year-old boy and the 9-year-old girl, both of whom have been diagnosed with attention deficit hyperactivity disorder and are identified in court documents only by their initials. School Resource Officer Kevin Sumner put the handcuffs around the children’s biceps, locking their arms behind them. A video of one of the incidents shows the 8-year-old boy struggling and crying while sitting in a chair at Latonia Elementary School in the Covington Independent Public School district.
“You don’t get to swing at me like that,” Sumner told the boy, according to a video that was captured by a school administrator and uploaded to YouTube by the American Civil Liberties Union, which is representing the women and their children. “You can do what we’ve asked you to, or you can suffer the consequences.”
A federal lawsuit filed in the eastern district of Kentucky says the boy – 3 feet 6 inches tall and 52 pounds – was removed from class last August because he was not following his teacher’s directions. The boy then tried to leave the principal’s office but was physically restrained by school administrators until Sumner arrived to escort the boy to the bathroom.
On the way back from the bathroom, the boy tried to hit Sumner with his elbow, according to a report from the Kenton County Sheriff’s office cited in the lawsuit. That’s when Sumner put him in handcuffs.

The lawsuit asks for a judge to ban the school from doing this again and for money to compensate for the pain and emotional trauma and for attorneys’ fees.
Kentucky state regulations ban school officials from restraining students in a public school unless the “students’ behavior poses an imminent danger of physical harm to self or others.” There is an exception for “a device implemented by trained school personnel.” But the regulations also ban officials from physically restraining students that they know have disabilities that could cause problems.
The lawsuit says officials at both schools were aware of the students disabilities, which including “impulsivity, and difficulty paying attention, complying with directives, controlling emotions and remaining seated.”
“Shackling children is not okay. It is traumatizing, and in this case it is also illegal,” Susan Mizner, disability counsel for the ACLU, said in a news release. “Using law enforcement to discipline students with disabilities only serves to traumatize children. http://www.sfgate.com/news/article/Parents-sue-officer-who-handcuffed-disabled-kids-6422335.php


Lots of fail here

Tinky's picture

Laugh if you must, but some 3' 6", 52lbs tykes pack a wallop.

It boils down to technique – and the fact that a well-executed straight right may land squarely on a set of adult huevos.

Kaervek's picture

As our officers diet consists solely of donuts and coffee I see how they might have problems controlling a kid like that, it's really a challenging task. Kid can count himself lucky he didn't get tasered, he was assaulting an officer of the law after all.

cheech_wizard's picture

Cheech Wizard says... Always go for a kick in da nutz.

tarsubil's picture

Holy shit are you serious? My daughter is bigger than that and no doubt stronger. Any grown man that fears her punch should call Guinness to be put down as the biggest pussy in the world.

Putting a toddler in handcuffs because they punched a cop? From the ADHD "disabled" label, to the lawyers, to the cop thinking that putting a tiny kid in handcuffs is okay, our society just doesn't work anymore.

Countrybunkererd's picture

Our whole civilization in the US is in danger.  Nothing is illegal anymore, but speeding can carry a death sentence if you mouth off to the cop.  Society is broken, and i doubt fixable.  Legislation of moral codes doesn't work without God.  America, contrary to our rozy teachings has never been much higher than pirates, outlaws and criminals...read about the state of Georgia. 

Tinky's picture

If sarcasm detection were the only available occupation, you'd be out of work.