3 ms·

Revenues are up. Losses are down. I might buy some discount Twitter...

• jusben1369 11y ago
  You have to ask yourself what _drove_ that initial valuation that you're now being "cheaply" That initial valuation was driven by the belief that they would be aggressively adding new users. It wasn't based on them doing a great job of extracting a better profit from a fairly static install base.
  • ibejoeb 11y ago
    I agree. I understand wall street is looking for massive user growth. That seems to be a wild misunderstanding of what Twitter is, though. I'm in the same camp as a few other commenters. It seems that Twitter's value is really in being a broadcast platform for big names. I don't think there is a viable contender out there. That population is finite, and "followers" can be passive consumers. I'm not sure that there is going to be much growth in the user base, and I think that's a natural property of twitter. I think it's still valuable and can be relevant for quite a long time.
• adventured 11y ago
  By comparison, Groupon has $3.19 billion in sales, and is valued at $3.17 billion. Why does Twitter deserve six or seven times the valuation that Groupon is getting? Especially given Twitter's user growth has fallen off a cliff. Of course they're in different segments, but financial results are all that matter ultimately. My opinion: they don't deserve the valuation, the market has realized it, and will continue to deflate their extreme valuation, eventually over-correcting due to negative sentiment. They're worth $5 to $10 billion today. On the bright side for Twitter, Google will probably buy them after their stock sinks further.
  • cft 11y ago
    That would be a big mistake for Google to buy them. Twitter was hyped by the media since it's used by the media, which led to its overvaluation. It is used surprisingly little by the ordinary masses.