I didn't say anything as to whether Twitter was over or undervalued, just that it was significantly different than the dot com boom. Hundreds of millions in users and hundreds of millions in revenue is decidedly different than very few users and no revenue.

As for your numbers, there is no reason that a company needs to match their valuation with revenue each. That would likely be extremely undervalued. Apple had 170 billion revenue in the last 12 months and a market cap of 465 billion that many people think is undervalued. 63x is excessive, but 1x is silly.

>But what investors are interested in is not revenue That's not always true. See AMZN

Profit is what I am interested in, and it is what a lot of people are interested though. Why are we comparing it to Apple, a hardware company with huge costs? It makes a lot more sense to compare to Facebook, which enjoys 50% margins. Also, why are we expecting it to have profits = to market cap? Really, 1x pe? Market average is ~15, with lots of companies being higher.

If, in 7 years Twitter has profit = to it's current market cap, it is an absolute steal at this price. Like unfathomably good deal. I'm not convinced they will keep growing revenue at 100%, certainly not for 7 years, but I am convinced that they will become profitable due to their low cost structure. I wouldn't be surprised to see 50% margins.

You're doing that math as-if 1x forward PE is a goal or something.

Why should the current years revenue have anything to do with market cap?

So your argument is that a company's value should be limited by 1 year's profits? Please start a company so that I may buy it from you.

I projected literally exponential growth of revenue for Twitter. Well, if it does grow exponentially, it won't be bad! Supposedly their costs won't grow as fast, and they'll have some healthy profits.

It will be a quite long-term investment anyway. Like, well, when Forrest Gump invested in AAPL.