LinkedIn rakes in revenue of $200 million per year, yet the company was recently valued at $9 billion when their IPO was made available to investors. On the private market SharePost has recently reported Twitter to have a $7.7 billion valuation on just $150 million per year (50x valuation), while Facebook is valued at an astounding $75 billion on $2 billion per year (37.5x revenue).
Then there’s Skype which was purchased by Microsoft for $8.5 billion and Groupon which is pushing close to a $25 Billion Valuation after turning down a $6 billion offer made by Google.
So the question exists, is the tech bubble nearing another pop? Social media site G+, a community of professionals, entrepreneurs and academics put together an infographic in which they show the ridiculous valuations of company’s based on growth, revenue and market valuation.