Is Twitters $7.7billion valuation justified?

Twitter - the rapidly growing status update service is now valued at whooping $7.7 in the second market. Investors have agreed to pay $34.50 a share for Twitter in the auction conducted by Sharespost, an exchange for private company shares that announced the news on Friday.

At the same time, the biggest social network Facebook with its 600+ million users is valued at over $75 billion.

Do you think the valuations of these startup companies is justified?

Replies

  • silverscorpion
    silverscorpion
    Well, twitter and facebook are not 'startups' anymore..

    As for their valuation, it's really for the investors and stock holders to decide.
    But in my own opinion, $75 billion is really too much for a company like Facebook.
    Well, granted it connects more than 1/10th of the whole world and all..
    but still, it's more than the total budget of some small countries..
  • Kaustubh Katdare
    Kaustubh Katdare
    I too think $75 is way blown up! My fear is that these large valuation may lead to a bubble burst in near future.
  • Saandeep Sreerambatla
    Saandeep Sreerambatla
    $75 Billion is just too much!

    Over hype will create problems in the future!

You are reading an archived discussion.

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