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Counting chickens before they've been conceivedCounting chickens before they've been conceivedPosted Jun 1, 2011 14:38 UTC (Wed) by erwbgy (subscriber, #4104)In reply to: Counting chickens before they've been conceived by job Parent article: Google open-sources WebRTC
Skype now makes money. According to their SEC filing, in 2010 they:
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Counting chickens before they've been conceived Posted Jun 1, 2011 22:39 UTC (Wed) by jmalcolm (guest, #8876) [Link]
At $20 million per year it would take 400+ years for Microsoft to pay off their investment in Skype.
I am not sure "they are making money" really justifies this purchase.
Counting chickens before they've been conceived Posted Jun 2, 2011 5:21 UTC (Thu) by ghane (subscriber, #1805) [Link]
There are two possible options to waiting 400+ years.
1. You expect income to increase sharply, and continue. Your payback period may then drop (next year to 100 years, a couple of years later to 30).
2. You don't care for the $20m anyway, you hope to sell it for $12b next week to Symantec. (Hey, it worked for Skype already :-) )
I am not saying either is likely, just that P/E is not what drives (at least my view of) investment, but (current P)/(future E). The Price is a done deal. But I am not really interested in their last years income, from which I do not get a cent, but in what I expect/hope will be their *next* year's income. I am buying a share in their future, not their past anyway (I hope no unsettled lawsuits turn up, but I can hedge against that).
Slightly off-the-mark, but what use is a new-born baby?
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Counting chickens before they've been conceived Posted Jun 3, 2011 11:32 UTC (Fri) by erwbgy (subscriber, #4104) [Link] Most people sleep too much and new-born babies are very good at ensuring that this doesn't happen. Everyone should have one :-)
Counting chickens before they've been conceived Posted Jun 3, 2011 17:02 UTC (Fri) by jjs (guest, #10315) [Link]
Yea, but last year's income can be an indicator of future income (we don't know the future). The last several years can provide pointers to the direction for future income.
"You pilot always into an unknown future, facts are your single clue. Get the FACTS." - Lazarus Long
Counting chickens before they've been conceived Posted Jun 3, 2011 2:18 UTC (Fri) by csigler (subscriber, #1224) [Link]
> I am not sure "they are making money" really
> justifies this purchase.
Since when has "they make money" (profit) ever justified any Internet company purchase? It seems to me that, over time, the opposite has proven true; "they lose money" is the far better justification.
Doesn't it go something like this?:
1. We should buy Company_X!
Clemmitt (who knows there's money to be made on this new-fangled Internet but is too stupid to figure out how ;^)
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