It doesn't have to have the earning potential of Google to be successful. It's valuation is 1/10th of Google's.
Re:TWTR
by tedunangst on Thursday November 07, 2013 @01:53PM
(#6691521)
1/10th of the earning potential of google is still... substantial.
I find it hard to accept that a rational person thinks twitter will ever have the profit earning capability of Google. It just seems nuts to me to justify twitter's future earnings potential on a black swan event.
I don't think anyone has claimed Twitter is going to be as efficient as Google at making money. But TV stations make a lot of money, and Twitter has a closer relationship to its users than a TV station. Twitter also has more users than most TV networks have viewers.
It's hardly a black swan to follow a model that has been proven to work over 50 years (ie, advertising around entertainment).
speculation is driven entirely by hype rather than any kind of solid metrics
Why do you say that? There are very solid metrics on Twitter's user base, and very solid metrics around what an average user is worth to an advertiser, either on the web or on a mobile device.
Speculation on the other hand I can sort of understand and accept (although it's kind of sad that the speculation is driven entirely by hype rather than any kind of solid metrics).