system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How can a company like "Snapchat" be valued at $3 billion USD (WSJ Figure) with no revenue?

Also I assume they are able to afford their office space, living expenses from investors?
gpt
It's valued at that because of the potential of future monetization and ad revenue.

It would be the same as investing in a gold mining operation. You're investing under the assumption there is gold in the mountain and that the team you invest in will reach it eventually.