Uber is a good business, but valuing it at $18 billion seems absurd to me. You can't price businesses as though they will have incredible growth without some discount for the risk involved. One of the risks is competition.
> You can't price businesses as though they will have incredible growth without some discount for the risk involved. One of the risks is competition.
I'm just gonna go ahead and assume that the investors understand this basic principle perfectly well, you're not being cleverer than them by disagreeing on the valuation, you're just using different assumptions about how incredible the growth could be and how large the risks are.
If Whatsapp can sell for $18 billion I don't see why Uber can't. Uber, after all, has an actual business model and income stream.
