Company That Has Only Lost Money Valued at $20 Billion
New York – QuickyShare, the incredibly popular social networking web application that allows users to share photos, videos and audio clips, was valued at $20 billion Thursday, after its stock finished the day trading at $44.10 a share. That was a marked jump from its initial price of $26 a share, following its much-heralded initial public offering Thursday morning.
Analysts say the stock’s price jump is evidence that there is a very bright future for QuickyShare and its investors, filled with huge growth potential. The site has hundreds of millions of users worldwide, and has already begun incorporating ads and promoted content into the stream of content those users see.
Critics, however, warn that QuickyShare is still very much in the early stages of its publicly traded life – indeed, it hasn’t even been a public company for 24 hours. They point out that the company has only lost money so far, some $300 million, to be exact, and the fact that it will turn a profit is anything but guaranteed.
Investors will have to decide if the chance of a huge future reward is worth taking a very real risk in the present.