Brian Hamilton : Have billion-dollar valuations of companies become the norm ? Hamilton : Even a decent business model does not justify such high numbers . Counting `` eyeballs '' or `` user base '' or `` potential '' only works in a bull market when market momentum can make poor decisions seem wise . WhatsApp 's acquisition price is above market cap of 275 companies in S & P 500 . Hamilton : The valuation for Facebook was $ 2 billion, and that includes its stock option plan which gives it an incentive to keep growing at this rate.
Brian Hamilton : Have billion-dollar valuations of companies become the norm ? Hamilton : Even a decent business model does not justify such high numbers . WhatsApp 's acquisition price is above market cap of 275 companies in S & P 500 . Hamilton : The valuation for Facebook was $ 2 billion, and that includes its stock option plan which gives it an incentive to keep growing at this rate.