"It's ridiculous," the Twitter investor said, given that private market benchmarks put the company's value at between 30 times and 50 times revenue. But Twitter is not your run of the mill application startup, either. Lots of other firms with "social" as part of their pitch will never amount to anything. If you had to bet, and clearly some people are, you'd likely think Facebook and Twitter will be survivors, after the inevitable shakeouts happen.
Monday, April 11, 2011
Twitter Investor Says Twitter's Valuation Is "Ridiculous"
Henry Blodget, who doesn't think we are in the middle of a tech bubble, says he asked a Twitter investor what the Twitter investor thought of Twitter's current private-market valuation.
"It's ridiculous," the Twitter investor said, given that private market benchmarks put the company's value at between 30 times and 50 times revenue. But Twitter is not your run of the mill application startup, either. Lots of other firms with "social" as part of their pitch will never amount to anything. If you had to bet, and clearly some people are, you'd likely think Facebook and Twitter will be survivors, after the inevitable shakeouts happen.
"It's ridiculous," the Twitter investor said, given that private market benchmarks put the company's value at between 30 times and 50 times revenue. But Twitter is not your run of the mill application startup, either. Lots of other firms with "social" as part of their pitch will never amount to anything. If you had to bet, and clearly some people are, you'd likely think Facebook and Twitter will be survivors, after the inevitable shakeouts happen.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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