Originally Posted by
gregrday
@futurist, I agree with most of your points, particularly, network effect, and SaaS not being such a 'new' beast. However, I think you are selling Xero a little short in that I very much doubt '2 dropouts from uni could build a similar service...'. Software is much more complicated than that, so I think there is a bit of moat that Xero has, assuming it can beat the competition, who will have a similar moat.
I think the Peter Thiel investment is incredibly important for Xero, but there is still a massive way to go. At the moment, @winner69 has it right in that its hard to argue with the masses! My own feeling is that Xero is significantly overvalued right now (although obviously better than last week!).
cheers
Greg