Twitter's Value Higher Than $11B?

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A new report out today claims Twitter's value could be higher than $11 billion. Say what? Unless they are talking about the analyst being "higher," I don't see where they got a number like that.

There has always been a lot of speculation about what Twitter is really worth, and a new report suggests the site could currently be valued as higher than $11 billion as it prepares to go public next year.
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Ahh, they are planting seeds of the expected IPO. Got to drive up hype and demand! Start early!
 
Wasn't HardOCP "estimated" at like a few million on some random website some time ago. I remember Steve saying if it was REALLY worth that much he'd of sold it instantly.
 
It seems like big media has fully adapted Twitter. Like Facebook, It's not going away for some time. I personally use Twitter for news and to follow comedians. Some companies use Twitter as their customer support (terrible idea) and TV stations use it to reach out to their viewers.

Are they worth 11B? I don't think so, but I'm no analyst/investor. 2013 Is reminding me of the tech bubble that burst in the early 2000's. Twitter Is just an intangible internet service after all.
 
twitter is a seriously powerful service. it is like the pr tool of the gods. it is like a public facebook.

seemingly without paying anybody for it, twitter is up there with facebook on every website and tv show. pretty powerful position. businesses share three internet addresses: their website, their facebook, and their twitter. pretty powerful
 
It says "A new round of funding in 2011 pegged the company at $8 billion, and its value rose to $10 billion on secondary markets"

The way they calculate this is let's say someone invested $500M for 5% of the company, $500m / .05 = $10,000m

Without it actually trading in public market, being bought whole or having them disclose financials, this is the only way for outsiders to create a valuation. HOWEVER, the major caveat is that we assume the investor who put in $500m is rational AND informed. We all know from FB how that turned out.
 
Ask yourself what function Twitter provides you?

What about it makes it have any worth, if it was to disappear?

It does not keep me warm, does not sustain me in any way, and provides me no essential vitamins or minerals.

Like Facebook, it has no intrinsic value.

11 Billion......really......really
 
I'm amazed twitter is still around. :confused:

I could have sworn it would be a fad, and dead within a couple of years... :rolleyes:
 
Twitter definitely has it's place. Some people find great value in it, others find none (or negative value - time wasted). I've been on and off Twitter a few times. This last time, I found a few great people to follow, and have found some real potential. Not monetary, but for information. I think it's a lot more for better networking (person to person or company to person) than anything. A good tool if you use it correctly, and you can use it. A lot of people can't use it (they can operate it, but it just has no value to them and it's just a feed of unusable information). I can't use a book about DVD authoring, as I don't do that and would have no use for it. Same concept.
 
Never used twitter -- and don't give a shit about what anyone posts on there. Apparently it's big in the celebrity world? Who cares if Beiber just got his pubes in or if Paris hilton just puked up her last meal.

I'm already a crotchety old man at the age of 31

Whoever is running the show at twitter -- cash out now and enjoy it. You don't need 1 billion dollars to enjoy life, much less 11 billion.
 
collegeboy69us said:
Never used twitter -- and don't give a shit about what anyone posts on there. Apparently it's big in the celebrity world? Who cares if Beiber just got his pubes in or if Paris hilton just puked up her last meal.

I'm already a crotchety old man at the age of 31

Whoever is running the show at twitter -- cash out now and enjoy it. You don't need 1 billion dollars to enjoy life, much less 11 billion.
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deja vu...never used twitter (or FB), turned 30 in October.

Never have seen the value in either and despise when someone comes up to me and says "Did you see _____ on Facebook/Twitter?!?"
 
What ads does Twitter run? I only read about them paying celebrities to post tweets. Are they selling some type of information in the background?

I could spend $1 billion very quickly if I had $11 billion in my bank account. I know someone who is a billionaire and they have a really cool lifestyle. You also wouldn't know they had that kind of money. Yet they still continue to work their butt off to try and help other people at this point in their lives.
 
whodie said:
deja vu...never used twitter (or FB), turned 30 in October.

Never have seen the value in either and despise when someone comes up to me and says "Did you see _____ on Facebook/Twitter?!?"
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Because usually it's just some random nonsense that i don't give two shits about.

I've seen twitter be useful once, with regards to following development of projects i was interested in. However, this sort of thing could just as easily be done on their website or blog.
 
collegeboy69us said:
Never used twitter -- and don't give a shit about what anyone posts on there. Apparently it's big in the celebrity world? Who cares if Beiber just got his pubes in or if Paris hilton just puked up her last meal.

I'm already a crotchety old man at the age of 31

Whoever is running the show at twitter -- cash out now and enjoy it. You don't need 1 billion dollars to enjoy life, much less 11 billion.
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Amen, brother.:D
 
Twitter has become one of the most powerful networking tools out there. I've gotten more contacts and assistance via people I've met through Twitter than any other service.

It's all in how you use it. If you follow a bunch of "fart jokes' accounts, well you get you get. Follow some pros of your industry and others in your field and you have a great resource.
 
You can bet that an IPO would attract enough speculative buying that the day one stock value will be inflated nicely, but how that would translate to even short-term performance is anybody's guess until they go public. $11B does seem super high given that Twitter, while popular, is a product that could be replaced in a relative heartbeat by any number of already existing services and, in fact, is already in competition with other services (every social network).
 
What people fail to realize is that Twitter and Facebook are not good avenues for advertising. Very few, If any, people actually look at or click any ads on these sites. Some advertisers have caught on and as soon as the rest do this will deflate.

Its like putting a billboard on the worlds busiest freeway only to realize 90% of the traffic is from public transit and nobody is looking the billboards.

as they store and track your internet behavior they can market towards you slightly better but its still quite over inflated.
 
Twitter is awesome if you are a sports fan. Follow all the insiders and you get news fast. I always know what is going on well before articles hit.

I am sure the same can be said for real news but who has time for that? Now excuse me while I watch "Ow, my balls!"
 
collegeboy69us said:
Never used twitter -- and don't give a shit about what anyone posts on there. Apparently it's big in the celebrity world? Who cares if Beiber just got his pubes in or if Paris hilton just puked up her last meal.

I'm already a crotchety old man at the age of 31

Whoever is running the show at twitter -- cash out now and enjoy it. You don't need 1 billion dollars to enjoy life, much less 11 billion.
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Same here. I'm 32 (well, soon 33), and I've never had a twitter account, never looked at a twitter feed, and don't really care.

It seems like nothing but a tool for companies/politicians/celebrities to quickly reach a large audience with their 140 characters of drivel.

As soon as I first heard of the character limit in Twitter, I was pretty certain I would never have a twitter account.

I was amused when Google's Eric Schmidt back in 2009 called Twitter "a poor man's email", but then again, now even he seems to have a twitter account (judging from my googling Eric Schmidt and Twitter in order to find the above quote)

As I mentioned above, thought for sure Twitter was going to be a fad, nothing more and then disappear. I'm still amazed that pile of junk is still around.
 
Twitter could be replaced easily from a technical viewpoint. Its all brand recognician. And the problem with that is if it popularity or reputation go down, its over. There's almost nothing to salvage.
 
Oh look, Facebook 2.0 stock market price inflation

I pity the sucker that buys stock when twitter goes public in a few months
 
Zarathustra[H];1039479180 said:
I'm amazed twitter is still around. :confused:

I could have sworn it would be a fad, and dead within a couple of years... :rolleyes:
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wrongdamundo!
 
If I owned Twitter and it was worth "11B" I would sell instantly. What a POS service.
 
...my thumb and fingers no longer oppose....

fukin' twitter...

other people are making me more stupidererrr. And I don't need more help with that.
 
Some of you guys need to consider that not using a product or service personally doesn't mean it is worthless. I have never used twitter, but can understand why some people do and it has name recognition like none other. It gets free advertisement on any news or sports channel on TV almost constantly and is used by millions of people daily. Saying it is worth nothing is like saying you don't need cancer meds/boner pills so pfizer must not be worth anything. Just becuase you walk everywhere does not mean Exxon is going broke. Twitter is not as heavily monetized as facebook and its valuation reflects that. Is it a bubble-ized price? I think somewhat, but I guess that is the market we currently sit in, so more power to the folks at twitter if they can pull that kind of cash out of it when they go for the IPO.
 
Company valuations are wholly based on hype and magical fairy dust, full stop. Ideally you're trying to come up with a basis for these numbers in real world conditions, which, let's face it, don't exist in Internet businesses. Very few reliable numbers crop up when figuring the actual value of online advertising; the advertiser lies about the success of their campaign, the content provider lies about the number of impressions, and click-through rates are massively skewed by questionable scripts on third party sites.
 
Speculation is the joke here.
In commodities like oil, etc they can't speculate too far because people see the price for the product they get.

When it comes to this crap, there is no real world connection. That's why P/E ratios are ridiculous for these "virtual services".
 
What ever happened to the traditional market valuation of Assets + Sales - Liabilities = Value of Company? Looks like they are monetizing (on paper anyway) each twitter account as potential revenue stream. That is like me getting a tattoo on my face of a company logo, going to a baseball game and getting a 3 second closeup. I then go to the company and demand 60 million dollars due to the potential revenue of my tattoo on national TV.
 
jhambi said:
Some of you guys need to consider that not using a product or service personally doesn't mean it is worthless. I have never used twitter, but can understand why some people do and it has name recognition like none other. It gets free advertisement on any news or sports channel on TV almost constantly and is used by millions of people daily. Saying it is worth nothing is like saying you don't need cancer meds/boner pills so pfizer must not be worth anything. Just becuase you walk everywhere does not mean Exxon is going broke. Twitter is not as heavily monetized as facebook and its valuation reflects that. Is it a bubble-ized price? I think somewhat, but I guess that is the market we currently sit in, so more power to the folks at twitter if they can pull that kind of cash out of it when they go for the IPO.
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I don't think its worthless but valuating a company 11 billion when all they do is send out tiny text messages of inane celebrity rants is asking a bit much. Last time I checked 11 Billion is a ton of money, heck 1 Billion is alot.
 
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