Say you grabbed a random selection of just 100 million people in the world, then ask them two questions, "Have you heard about Nike?" and "Have you heard about Cursor?", what would you guess the ratio would be like?
Even when you use "Nike the Company" vs "Cursor as a general search term" to compare search history in Google Trends, it's 71/5, so I'm guessing most people would say they've heard about Nike, while probably most never heard about any software program called "Cursor".
Fair point, those are valuable for other reasons. My point was more to illustrate "Nike is valuable because of the brand", without using those exact words :)
Intercom allegedly has ~400M of annual revenue, making the multiplier less than 10X. Huge customer base and established brand. Looks like a steal indeed!
Cursor at 60B is WAY overvalued. At this point you have to assume that anything that gets touched by Elon is hyper driven financial engineering.
> Cursor at 60B is WAY overvalued.
You can't possibly mean a glorified editor-shell isn't as valuable as say Nike, Deutsche Bank, Target, Ford or Nintendo?
> You can't possibly mean a glorified editor-shell isn't as valuable as say Nike
That's a glorified feet-shell. So like-for-like?
Say you grabbed a random selection of just 100 million people in the world, then ask them two questions, "Have you heard about Nike?" and "Have you heard about Cursor?", what would you guess the ratio would be like?
Even when you use "Nike the Company" vs "Cursor as a general search term" to compare search history in Google Trends, it's 71/5, so I'm guessing most people would say they've heard about Nike, while probably most never heard about any software program called "Cursor".
If you asked the same selection of people about Saudi Aramco or SK Hynix none of them would know what those are either though, right?
I do think 60B for Cursor is way overvalued. Just not sure how to quantify
Fair point, those are valuable for other reasons. My point was more to illustrate "Nike is valuable because of the brand", without using those exact words :)
Sure but I would expect an exit of like 20b or just list and go public…
European versus US startups maybe?
While I think that this is a bad move for Intercom, it's actually brilliant for Dublin and Ireland that they have finally exited.
Intercom allegedly has ~400M of annual revenue, making the multiplier less than 10X. Huge customer base and established brand. Looks like a steal indeed!
The world we live in… 10x revenue is a “steal”.
Lots of embedded assumptions about growth and margins to convert that revenue multiple to discounted cash flows.
A steal compared to other “AI-adjacent” valuations.