Twitter scores another $15 million, and it's worth around $80 million.
let me get this straight... A Web app with no business model that
basically blogs short entries and aggregates them is worth $80 million.
Doesn't that feel very 1999 to you?
That's a very naive description of Twitter
It really is pretty naïve of you. Try pasting this into your post instead…
A Web App that is destined to change the world as we know it by revolutionizing communication and replacing e-mail, IM, broadcast news, and even the telephone while pulling in billions upon billions of dollars with a business model that will rock the financial world once they come up with it is worth $80 million dollars.
Now do you understand? Glad to hear it.
(All joking aside, the difference between now and 1999 is that startups in 1999 were at least trying to create products with mass appeal. Startups now don’t even bother with anyone other than the tech-crowd)
That last part is totally true, and I've been saying it for awhile.
So, Bozo, you should call Twitter and tell them you have the secret to profit. I'm sure they'd love to hear it.
You are missing a big part of valuation, which is number of users. If you looked at all the other aggregation social applications there are probably thousands, but how many have as many users as Twitter, not to mention that despite the reliability issues they still continue to have a large following, which indicates stickiness and offers some value to the end users.
You could argue the same for Facebook or Myspace, which are valued high because of the user-base, but how they monetize that will have to be seen, I wonder how any of these companies can operate with a profit, does the ad revenue sustain them or are the VC's backing them propping them up?
We've heard the eyeball argument before, also in 1999. What makes it especially tricky with the tech-centric Twitter audience is the free free free mentality. They aren't going to pay for it, and you may chase them off with ads.
MySpace and Facebook get notoriously low CPM's for ads, which to me says that someone approached it entirely wrong. While traditional ad networks have tried to data mine their way into a reasonable profile about you (or rather, your random ID number), sites like Facebook know actual quantifiable data about you (city, job, marital status, etc.). How do they realize the value of that in the monetary sense?
I think Twitter's revenue strategy is build and flip.
I have to agree. Twitter's value at this point in time and going forward is somewhat quetionable at this point in time. Eyeballs will only take you so far. What are they going to do to build a business where the inflows are greater than the outflows? I don't know. I don't see how the business will succeed, however, only time will tell.