Well, you'd need 400 Million on profit for a fair $8 Billion valuation (at 20-1 P/E). I don't know what Twitter's current ad revenue is, but I think that having sponsored tweets is a good idea, as long as I don't get emails from Twitter featuring sponsored Tweets (and if sponsored Tweets are something everyone can buy). Having ads mesh in with the main content of your site is, i believe a winning formula (this has been a great is part of Google's success). I think that $8 Billion at this point is more reasonable than lets say $80 Billion at this point for Facebook, but we shall see.
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8 billion is a lot of future profits.
Well, you'd need 400 Million on profit for a fair $8 Billion valuation (at 20-1 P/E). I don't know what Twitter's current ad revenue is, but I think that having sponsored tweets is a good idea, as long as I don't get emails from Twitter featuring sponsored Tweets (and if sponsored Tweets are something everyone can buy). Having ads mesh in with the main content of your site is, i believe a winning formula (this has been a great is part of Google's success). I think that $8 Billion at this point is more reasonable than lets say $80 Billion at this point for Facebook, but we shall see.