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In video it's explained like "valuations are high, but it's not a bubble".

Would that mean their growth will stop at certain level for a longer period? I guess realization will need to meet expectation at some level. Expectation for Facebook are sure high, but I doubt it can go go for trillion valuation without multi^2 billion revenue.

Would love to hear more thoughts from Paul.

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Another example from the video is that a 10M valuation for a startup isn't really saying the startup is worth 10 million, but rather that it has a 1% chance of reaching 1 Billion.

One can actually look at Facebook the same way. One could argue that Facebook is competing with Google at being the primary way people discover information online, and at being a driver of incoming traffic. So one could say that Facebook's valuation with the GS investment reflects a belief that Facebook has around a 25% chance of becoming as valuable as Google.

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