Believe it or not, "Twitter is underhyped," said Robert Scoble in Scobleizer's posterous. The micro-blogging site is winning the battle against Facebook and other competitors as businesses "drink the Twitter Kool-aid." With businesses all over the world deciding that Twitter is the way to bring customers in the door, the company must be worth $5 billion to $10 billion.
Twitter isn't worth anything close to that yet, said Alex Wilhelm in TechGeist. Twitter's current revenue is zero, and it will have to get tens of thousands of those businesses to fork over, say, $125 a month to justify anything close to such a crazy valuation. Scoble, a "great technologist," is right—Twitter eventually will find a way to monetize its skyrocketing traffic—but for now valuing the company at $2 billion is generous.
Robert Scoble's estimate of Twitter's worth has bloggers buzzing, said Fred Wilson in Seeking Alpha, but let's hope the folks at Twitter can tune it out. For one thing, it's all speculation—earlier this year TechCrunch valued Facebook at $2 billion a month before an investment from Digital Sky that valued Facebook at $10 billion. The bottom line is that a young company like Twitter needs to focus on "building the company, the product, and the business," and wondering "what their company is worth can be terribly distracting."
Continue reading for free
We hope you're enjoying The Week's refreshingly open-minded journalism.
Subscribed to The Week? Register your account with the same email as your subscription.