On: Stripe’s new funding round values company at $35B

[mathattack]

A couple thoughts on why this isn’t a fair comparison:

- Goldman is profitable but the employees extract most of it via compensation.

- Goldman has to rewin their business every year. Very little recurring revenue and they are one recession from imploding.

- You can’t really compute valuation on a very small investment. It’s not like the entire float is trading, and the small investment (relative to valuation) can have all kinds of liquidity preferences and special rights.

[tryitnow → mathattack]

I think your third point supports the OP original point. Stripe probably isn't "really" worth that much now.

EDIT: wanted to mention that my impression is that they're a great company, just not worth $35B.

[mathattack → tryitnow]

They are great. Don’t undersell the benefit of recurring revenue. Compare the valuations of credit card companies vs GS too.

[jamiegreen → mathattack]

- Goldman has to rewin their business every year. Very little recurring revenue and they are one recession from imploding.

Haven't they weathered a fair few recessions already?

[mathattack → jamiegreen]

They weathered the last one. Lehman and Bear didn’t.