from Hacker News

Snapchat is worth more than $3B

by Ataub24 on 11/19/13, 4:48 PM with 1 comments

• by jburwell on 11/19/13, 5:10 PM

  To my mind, the Snapchat business plan is as follows:

      1. Collect lots of ephemeral photos from lots of people
      2. ??
      3. Profit!!
  

  So you have all of these users and all of these ephemeral photos flowing your severs. Thus far, all you have made the case for is an incredibly high hosting/AWS bill. The 2000 crash proved that eyeballs do not automatically translate to dollars. This article seems to simply hand wave away that lesson. I agree that should be a way to find profits from such a mass of data and large user base. However, I have yet see anyone publicly articulate a concrete business model which yields revenues let alone profits.