Is the dot com bubble building again?
 

Google and Facebook are talking about buying Twitter, and news reports are saying Twitter is worth $8 billion to $10 billion. Get the fuck out of here. How much does Twitter make in a year?

I mean, give me a billion bucks and I'll build you a kick ass website and market it until it's a household name....

Did twitter start with a billion dollar?

Most people would probably fail building a house hold name, even with a billion dollar available.

I have 316,317 Tweets


(Your Tweets 316,317)

yeah easy to build a site with 200,000 users.

Twitter is huge!

if my memory serves me right, they made 45 MIL in 2010 and estimated around 100 MIL in 2011.....i have no clue how they value it at 10 B

who came up with the number?

In case of FB it was obvious how (or better why) they came up with that number lol

It's all about the promise of it's future worth -- which is what got the dotcomers into trouble the last time.

feels like it....

Watching everything merge.

I believe I read it in the WSJ just recently....
let me see if I can find a link

http://www.cleveland.com/business/in...der_buyin.html

tick tick tick tick POP!

It's got nothing to do with the revenue Twitter currently makes. It is to do with the ridiculously fast and huge growth rate it has had.


The thing you're missing, is that no one gave Biz Stone a billion and said go build a site.

He started it with not much and built it.

No one is stopping you doing what he did. Go for it. Post links when you're up and running.

no idea, but twitter isnt worth that much.

It's not a bubble at all... but that doesn't mean it will last forever either.

Any of us here with a half decent idea/product (that isn't porn) can easily go get investors, vc, etc. Heck you have entire websites dedicated to people investing in Companies/ideas. If you have the next best idea, put together a business plan and start talking to investors just like the others did.

Data on people is worth a ton of money. It's worth far more as time goes on and you learn more about the people. And just like all of us, the more we learn about our traffic - the higher the value of that traffic increases. Another words, as time passes by, Twitter and FB will be worth more money - simply because they learned more about the current users they have.

And that's how they are worth so much...

I hope the dot come is building - I have www.googlefacebooktwittergeoamazonebay.com and host midget porn on it - I am going to be the richest person in the world!

Everything is only worth what a buyer wants to pay....

If google & FB want to pay that kind of money, then its worth it :(

This is my point. Why is a company that is "estimated to make $100 million next year" valued in billions of dollars? A company isn't worth twenty times what it's estimated potential earning might be.

I believe it is. End 2011 into 2012 could be very interesting.

They made over a billion dollars in 2010, and cleared $100m net in the last quarter.

What are they at, 7 years? Largest site in the world, more world wide visitors than Google, and FB hasn't monetized even 1% of what they could?

While Google makes what FB does in two weeks, they are equal in traffic. This shows how much they can grow once they start to monetize everything - that's how damn big they are.

If Google is worth it, then FB is damn sure worth it.

Assets and potential earnings.

Remember when Donald Trump was worth X amount, but if you took everything he owned and the loans on the stuff, he was in the hole at one point???

Next year they are going to add pop unders to profiles, LOL

They didn't make a billion dollars or even $100m last quarter:

http://news.yahoo.com/s/ap/20110210/...uisition_talks

2010 revenue was $45 million for the year - and they lost money.

A company that only makes $45 mil in a year and in fact loses money is worth ten billion? Put down the fucking crack pipe.

Doc....I 'think' Rochard is referring to Twitter (Not FB)...those are the numbers i was looking at

When I say the largest site in the world, who do you think I'm talking about?

And Twitter, is worth that, the price is based on the amount of active users. A user that is active has a value - and Twitter's user value has increased per user year over year. Thus - it's worth money - even more so when they've hardly done any type of monetization.

Again, the value of twitter is in the user account data. It has nothing to do with revenue, some people are good at building services - others are good at making it turn a profit. Either way, it still has extreme value.

Yeah, I think your right. He said....

I'm talking about Twitter.

But still - FB is the largest, but if they are only pulling in $100 mil a quarter, that's less than half a billion dollars a year. It shouldn't be valued at tens of billions of dollars - It's not making that much, and chances are it will be knocked down in the future. Myspace used to be the standard and we never imagined that it would be replaced, but it was.

I went off the $100 million last year aspect of the comment.. :) Never even thought of Twitter. I consider Twitter to be a very new service, I expect it will take them another 2-3 years before, they either go belly up or end up being a real contender - either way, even if someone buys them - it will still take several years before it's really ready.

They have reports on what the average active user earns the system based on current ad methods-projections for ads, what is spent on ads, what is earned on the products of those ads, and so on...

FB has like a $1000 per user value, doubled in the last two years, 500 million active users - do the math.

Twitter has over 175M users.... Not 200k.....

http://www.marketwatch.com/story/why...ion-2011-01-04

Regarding fb.

Exactly... They already have a per user value and they haven't even remotely monetized the system yet. The real user value estimates are much higher than what marketwatch is stating too, you have to account for the products sold, as FB is going to release similar services and take that money - like music.

Yep and this time it could be worse.

just a reminder about valuation....

MySpace Purchase

lot of us thought 1/2 a billion was insane at the time
excluding the lovely tax losses for news corp, i think we were right

Haha first thing that came to mind when i read about THE 50b fb valuation. Perhaps à bit different situation now but still ;)))

what goes up must go down...

http://static.funnyjunk.com/gifs/4df853a6_813a_332e.gif

Current valuations for social media are too high. So in that sense, yes social media is a bubble.

Yup, sites like this are valued on a per user value...the same as when a cable company gets bought...they aren't based on revenues, rather the number of users and a per user value.

There is more to it than just revenues generated. For example, if Google bought out Twitter...they would only generate a certain amount of revenues from Twitter itself, BUT, would make more on all of that user data. The more people tweet and expose their likes, dislikes, buying trends, etc. Google could use that data to enhance their own advertising. The more data they have access to, the better they know how to serve up extremely tailored ads.

Beyond any doubt it is certainly bubbling again... specifically for SaaS, social media, and mobile. I could have funding secured in mainstream in 30 -60 days easy; if I wanted to go that direction :P

Unlike the adult space, the dollars aren't scared and they understand where the future of the online space is headed... Meanwhile 95%+ in the adult space is still trying to figure out why the same product offering they had in 1997 isn't selling as well today...

:2 cents:

My prediction is that we'll soon start to see a major comeback from Geocities; it will be right up there with Facebook and Twitter
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http://www.eweek.com/c/a/Web-Service...-Later-785579/
Yahoo has pulled the plug on GeoCities, which it acquired in 1999 for $3.6 billion in the hopes that millions of users would use the service to create their own Web pages. The shutdown will come later in 2009, although Yahoo declined to specify an exact timeframe.
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Smartphones out sold PC's the 4th quarter of last year, overall in 2010 PC's just outsold smartphones, by a hair. This is what has helped make the smartphone a LARGER buying power than the PC Web - from mainstream to porn. Thinking it's going away, is pure silly.

I assume you're joking with the SaaS as well.... Some will fail, that's normal - but some have 10,000's (and more) of members, that pay monthly, from a few bucks a month, to $100's of dollars each month... they aren't going anywhere anytime soon.

Tell ya now... you can get all the funding in the world, if you don't go mobile - you will 100% fail, that is without question.

I was going to give the cable company example but deleted it... If Google gets a hold of Twitter, I truly think it will end its life, then again I don't see why FB would get it right either.