{"id":45493,"date":"2020-11-29T02:15:59","date_gmt":"2020-11-28T21:15:59","guid":{"rendered":"https:\/\/techcrunch.com\/?p=2079063"},"modified":"2020-11-29T02:15:59","modified_gmt":"2020-11-28T21:15:59","slug":"what-to-make-of-stripes-possible-100b-valuation","status":"publish","type":"post","link":"https:\/\/www.technologyforyou.org\/what-to-make-of-stripes-possible-100b-valuation\/","title":{"rendered":"What to make of Stripe\u2019s possible $100B valuation"},"content":{"rendered":"
<\/div>\n

This is The TechCrunch Exchange, a newsletter that goes out on Saturdays, based on the column of the same name<\/a>. You can sign up for the email here<\/a>.<\/em><\/p>\n

Welcome to a special Thanksgiving edition of The Exchange. Today we will be brief. But not silent, as there is much to talk about.<\/p>\n

Up top, The Exchange noodled on the Slack-Salesforce deal here<\/a>, so please catch up if you missed that while eating pie for breakfast yesterday. And, sadly, I have no idea why Palantir is seeing its value skyrocket. Normally we\u2019d discuss it, asking ourselves what its gains could mean for the lower tiers of private SaaS companies. But as its public market movement appears to be an artificial bump in value, we\u2019ll just wait.<\/p>\n

Here\u2019s what I want to talk about this fine Saturday: Bloomberg reporting<\/a> that Stripe is in the market for more money, at a price that could value the company at \u201cmore than $70 billion or significantly higher, at as much as $100 billion.\u201d<\/p>\n

Hot damn. Stripe <\/span><\/a> would become the first or second most valuable startup in the world at those prices, depending on how you count. Startup is a weird word to use for a company worth that much, but as Stripe is still clinging to the private markets like some sort of liferaft, keeps raising external funds, and is presumably more focused on growth than profitability, it retains the hallmark qualities of a tech startup, so, sure, we can call it one.<\/p>\n

Which is odd, because Stripe is a huge concern that could be worth twelve-figures, provided that gets that $100 billion price tag. It\u2019s hard to come up with a good reason for why it\u2019s still private, other than the fact that it can get away with it.<\/p>\n

Anyhoo, are those reported, possible prices bonkers? Maybe. But there is some logic to them. Recall that Square <\/span><\/a> and PayPal <\/span><\/a> earnings pointed to strong payments volume in recent quarters<\/a>, which bodes well for Stripe\u2019s own recent growth. Also note that 14 months ago or so, Stripe was already processing<\/a> \u201chundreds of billions of dollars of transactions a year.\u201d<\/p>\n

You can do fun math at this juncture. Let\u2019s say Stripe\u2019s processing volume was $200 billion last September, and $400 billion today, thinking of the number as an annualized metric. Stripe charges 2.9% plus $0.30 for a transaction, so let\u2019s call it 3% for the sake of simplicity and being conservative. That math shakes out to a run rate of $12 billion.<\/p>\n

Now, the company\u2019s actual numbers could be closer to $100 billion, $150 billion and $4.5 billion, right? And Stripe won\u2019t have the same gross margins as Slack <\/span><\/a>.<\/p>\n

But you can start to see why Stripe\u2019s new rumored prices aren\u2019t 100% wild. You can make the multiples work if you are a believer in the company\u2019s growth story. And helping the argument are its public comps. Square\u2019s stock has more than tripled this year. PayPal\u2019s value has more than doubled. Adyen\u2019s shares have almost doubled. That\u2019s the sort of public market pull that can really help a super-late-stage startup looking to raise new capital and secure an aggressive price.<\/p>\n

To wrap, Stripe\u2019s possible new valuation could make some sense. The fact that it is still a private company does not.<\/p>\n

Market Notes<\/h2>\n

Various and Sundry<\/h2>\n

And speaking of edtech, Equity\u2019s Natasha Mascarenhas<\/a> and our intrepid producer Chris Gates<\/a> put together a special ep on the education technology market. You can listen to it here<\/a>. It\u2019s good.<\/p>\n

Hugs and let\u2019s both go do some cardio,<\/p>\n

Alex<\/a><\/p>\n

By TechCrunch Source Link<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is The TechCrunch Exchange, a newsletter that goes out on Saturdays, based on the column of the same name. You can sign up for the email here. Welcome to a special Thanksgiving edition of The Exchange. Today we will be brief. But not silent, as there is much to talk about. Up top, The Exchange noodled […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14083],"tags":[14280,14241,14296,14605,17786,231,15546,14306,14307],"class_list":{"0":"post-45493","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-technology-industry-news","7":"tag-fundings-exits","8":"tag-palantir","9":"tag-paypal","10":"tag-slack","11":"tag-square","12":"tag-startups","13":"tag-stripe","14":"tag-the-exchange","15":"tag-the-techcrunch-exchange"},"_links":{"self":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/45493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/comments?post=45493"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/45493\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/media?parent=45493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/categories?post=45493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/tags?post=45493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}