While the company has delivered only three quarters of results to the public, they indicate it could bring in up to $3.5 billion in revenues this year, and bring up to one-fourth of that to the bottom line. It seems to be a seasonal business (although some might read the same numbers and call it a fad), with nearly $7 billion in assets and just one-tenth that amount in debt.
Is that worth $100 billion? Probably not. But is it worthwhile as a business? Without a doubt, yes. There is a price for it that makes sense, something between its perceived value before the IPO and the popular view now.
The first rule of investing is don't fall in love with your holdings. But this first rule is almost always broken, by everyone from the founding CEO to the guy (like me) with 100 shares. Take a deep breath, run some numbers, do some yoga and figure out what things are worth outside the panic room. If you treat your broker like a bookie, you're going to end up with a lot of losses.
At the time of publication, Blankenhorn held shares of Microsoft and Google.This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.