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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsQuestion: Why is Twitter worth 44 Billion-It's a forum like DU?
Twitter is a forum like Democratic Underground, just a different format. I know advertising has a lot to do with it, but 44 billion dollars!
Many of these forums have come and gone over the years. Why is Twitter worth so much?
TheRealNorth
(9,481 posts)And famous people are encouraged to post there to hawk their wares which draws more eyeballs.
BannonsLiver
(16,387 posts)If not more. DU might have a few hundred people who actually post daily here. I have no idea what the numbers are just that they are not comparable.
Blueplanet
(253 posts)Like Facebook. With users from all over the world. But, they all just seem to fade over time.
Jerry2144
(2,102 posts)You and I. Thats got to be with something? 😏
BannonsLiver
(16,387 posts)Still worthwhile though, so theres that.
hlthe2b
(102,282 posts)which does not include the unregistered but occasional or regular readers only, like myself.
Important Twitter Statistics
Twitter currently has 396.5 million users
Twitter brought in $3.72 billion in revenue last year (2020)
206 million users access Twitter daily. 75% of them are not based in the US
Twitter is most popular among users aged 25-34
8.85% of the worldwide social media users access Twitter
Worldwide, men use Twitter more than women
Quarterly Twitter revenue is over$1.1 billion as of Q2, 2021
In the US, 92% of tweets come from the top 10% of users
On average, Twitter US users spend 158.2 minutes per month on the app
In the US, Twitter app was downloaded over 6 million times in Q4 2020. The vast majority of app downloads were from the App Store
https://backlinko.com/twitter-users
Thanks for the statistics.
unblock
(52,241 posts)But certainly it's worth billions because they are huge and generate tons of revenue.
Sometimes it all comes done to building a big crowd for others to sell to, nothing more, however that crowd is built.
Gore1FL
(21,132 posts)Mike_in_LA
(187 posts)And all the big social media apps have TOOOOOONS of data.
ProfessorGAC
(65,047 posts)Yes, they're an enormous social media company.
But, they have only around $13.5 in assets. They have only around $5 billion in revenue.
So, they're cap is 3.2x assets, which is inordinately high. This is especially true as Twitter is in a mature phase & they're market capitalization shouldn't be based on potential any longer. Yet, it still is.
But, from a purely financial point of view, they shouldn't be worth $44 billion. But, much of the tech sector doesn't make financial sense.
Blueplanet
(253 posts)Thanks.
Remember MySpace? It's still active. Not sure how much it's worth today though.
ProfessorGAC
(65,047 posts)They're a $60 million dollar company with $109 million in revenues.
See, how revenues greatly exceed the capitalization? Investors are only irrational on the way up!
usonian
(9,809 posts)Without advertising, Twitter, Facebook/Meta, and Google are worth about $20.00.
Advertising is augmented by surveillance capitalism.
And what is the advertising worth? WAY MORE LESS THAN CLAIMED BECAUSE:
Bots Corrupted Advertising
https://www.wired.com/story/bots-online-advertising/
Botmasters have created a Kafkaesque system where companies are paying huge sums to show their ads to bots. And everyone is fine with this.
IT'S ALL A FREAKING HOAX, EXCEPT FOR THE MASSIVE INVASION OF YOUR PRIVACY.
Over and out.
Blueplanet
(253 posts)ProfessorGAC
(65,047 posts)While you're correct that the preponderance of their revenue is advertising revenue doesn't come close to justify8ng that market cap.
Their assets are 30% of cap.
They're clearly ove4valued.
By contrast (admitting the sector difference) Wal-Mart has revenues of around 150% of market cap, and assets are nearly at par.
usonian
(9,809 posts)perceived future value in growth stocks. And that is why when growth falls, or is expected to fall, market cap craters.
Mark Zuckerberg's net worth has dropped $71 billion this year
https://www.cbsnews.com/news/mark-zuckerberg-net-worth-lost-70-billion-metaverse/
Sep 20, 2022
The stock market rout of 2022 has reduced the personal worth of plenty of tech billionaires, but none more than Meta CEO Mark Zuckerberg. The founder of the company formerly known as Facebook,...
Twitter is the "beneficiary" of arbitrage, to the extent that anyone can figure out what is going on, as companies are usually bought at a premium to market price.
ProfessorGAC
(65,047 posts)But, the tech sector has been skewed for a while.
Future perceived value growth: of a mature platform like Twitter?
The history is sufficient to know that growth is at the organic & incremental stage now. But, it's still valued as a growth stock
The data suggests the growth potential (of significance) is an illusion.
usonian
(9,809 posts)https://www.theatlantic.com/science/archive/2022/10/inflation-reduction-act-climate-economy/671659/
No paywall for me. If so, you probably know the remedies.
So inspired by the vigor of Credit Suisses forecast, let me venture a few predictions of my own. The number of Americans working in a climate-relevant industry is going to explode. It is going to undergo what you might call a techification. I was a nerd and a dreamer in high school in the late aughts, which meant I paid attention to the start-ups of that erasuch as Twitter, Facebook, and Flickrin their early years. I remember that fateful moment around 2010 when the valence of the industry switchedit was right around when The Social Network came outand working in tech went from being a career choice for dorky optimists to the default career track for many ambitious college students. A similar switch is coming for companies working on climate change: The opportunity will be too large, the money too persuasive, the problems too intriguing.
Finally, those of us who have long worked in climate changeand here I include myself, who started covering this topic in 2015should have some excitement and even humility about this deluge of new talent. Even setting its arduous politics aside, managing climate change is a legitimately difficult technical and cultural problemits going to require as many attentive and enthusiastic brains as possible, and the path to decarbonizing always required an infusion of new workers, investment, and good will. If you dont yet work in the industry, but have always cared about climate change as an issue, well, this is your moment to get involved. These companies are going to need engineers, yes, but also programmers, accountants, marketers, HR staff, general counselsthere is space for everyone now.
The fight against climate change is going to change more in the next four years than it has in the past 40. The great story of our lives is just beginning. Welcome aboard.
Ferrets are Cool
(21,106 posts)Most famously, Myspace, but also Friendster, Peach and Pownce. Twitter will close down one day and the owner will file bankruptcy.
usonian
(9,809 posts)The standard "exit" for a startup is to go public or be bought (sometimes, just to buy employees all at once).
And sometimes to be bought later, after going public.