

Why Nest Is Worth Less Than Pinterest - rahuldeshpande
http://www.slate.com/blogs/moneybox/2014/01/02/nest_vs_pinterest_here_s_why_investors_like_intangible_products.html

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coldtea
> _A company like this can, at the peak of its powers, achieve totally obscene
> profit margins. So you want to pay a lot for a firm that has even a small
> shot at that kind of ring._

The only problem is reality. Most of those companies, in actual life, never
got any profit margins to match their valuations, and in fact ended up money-
losing machines.

And none of them have ever thought of a way to monetize other than: throw some
ads at out user base, at which point, they start to dislike the service and
the new upcoming, "we're still thinking how to monetize", comes along.

