Here's how heady Wall Street is getting these days.
A company pretty much only known for making a smartphone game is worth $7.6 billion.
Nearly $8 billion dollar for an Irish company whose claim to fame is ‘Candy Crush Saga.'
I know lots of people love to play the game, but why do I feel lots of people are getting played?
Especially when Wall Street praises the company's conservative pricing.
Says King Digital Entertainment could have priced its IPO even higher, but settled on selling 22.2 million shares between 21 and 24 bucks because it didn't want to appear too piggy.
Really?
$7.6 billion for ‘Candy Crush.'
That's not a crush, that's a fix.
I don't care how popular the game is. And I'm told it's mighty popular.
But I'm also told that King's revenues weren't as kingly in its latest quarter of $1 million dollars, down 20 million bucks from the prior quarter.
A sign the ‘Candy Crush' rush is fading?
Who knows. This much I know.
‘Candy Crush' accounts for 78 percent of King's revenue.
Put another way ‘Candy' is pretty much King's cash cow.
And yet they're valuing this company on a par with electronic arts?
Sweet for ‘Candy.' But god forbid users tire of the game because there'll be one hell of a rush for the door.
I'm not here to rip a gaming company just make you think whether someone's gaming us.
Zynga ring a bell?
Its ‘FarmVille' game was all the rage when it went public in 2011.
Now Zynga's stock price is half what it was then.
But the beat goes on.
Facebook buying online messaging service "WhatsApp" for $19 billion.
A 23-year-old kid who passes up selling his company Snapchat for $3 billion.
I'm told it's a new day. I'm told it's a new paradigm.
It's not about profits. It's about promise.
Maybe I'm just an idiot.
But I swear I heard that one before.
It was early 2000 and a boom.
And all the rage were dot-coms.
Until in an instant, they were dot-bombs.
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