Does a large user base mean a large revenue stream? Not necessarily for an internet business.
As an investor, I care more about the revenues than user base.
Facebook, the popular but financially unproven social network, which is reportedly being valued by investors at up to $15 billion.
That is nearly half the value of Yahoo, where as Y! revenue is 32 times that of Facebook (estimated) .
Google, which recently surged past $600 a share, is now worth more than I.B.M., a company with eight times the revenue.
How are internet companies evaluated?