The social media space is fundamentally a pricing space, not a valuation space; the driver of market value for social media companies is not revenue or earnings (most make little), but user count, with the market paying approximately $100 per user

factualpending

Speaker

Aswath Domodaran

Evidence Quote

The social media space is a pricing space... It's not because how much they made in revenues... It's not because how much money they make.

Source

Valuation in Four Lessons | Aswath Damodaran | Talks at GoogleTalks at Google
Created: 8/11/2026, 1:45:13 AM

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