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Twitter Has Been Valued at $10 Billion… Even Though It Barely Makes Money and Not That Many People Use It!

It’s like everyone’s forgotten about the dot-com implosion a decade ago.  Where someone would slap up a website that wasn’t making money, and didn’t have a real plan to make money… and it would STILL be valued in the BILLIONS.

(Photo by Justin Sullivan/Getty Images)

According to the “Wall Street Journal”, the latest estimates show that Twitter could be valued at $10 BILLION.  TEN.  BILLION.  And while it’s a household name and celebrities think it’s cool… that’s INSANELY high.  Check this out…

–Twitter made $45 MILLION in revenue last year.  So its valuation is more than 200 times its revenue.  For reference, Facebook was valued at 25 times its revenue . . . and industry experts said THAT was ridiculous.

Even though Twitter is popular, only 12% of Internet users are on Twitter.  That’s compared to 62% who use Facebook… or 74% of cell phone owners who text.

Of course, just because it’s valued at that much doesn’t mean anyone’s going to buy it for that much.  But both Facebook and Google have been making serious moves toward purchasing Twitter… before they heard that price.

And to Twitter’s credit, they COULD make a lot more money… loading up the page with ads or even charging fees to people who are heavy tweeters… but they’ve resisted doing that so far.

(Wall Street Journal)

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