Twitter was recently evaluated at $1.1 billion. I'm a Tweeter, and I even claimed that one day, Twitter could surpass Facebook in terms of size and revenue. That's because their system is simple and single-focused in an increasingly mobile, short-attention-span world.
But $1.1 billion? THEY DON'T HAVE A REVENUE STREAM!!!!
Isn't this, in part, why Capitalism failed us in 2007-2008? People falsifying markets and companies that have no business (literally in this case) getting valuations as high as they did? Just because it's cool, doesn't make it valuable. It needs to make money first. Doesn't it?
I'm not an economist. There are things that I don't fully understand. But I also think that the complicated systems created by Wall Street got us into the mess we were in and still are fighting through in some parts of the country. This rang true in Michael Moore movie Capitalism: A Love Story, when he asked members of Congress and Wall Street bankers to 'define a dividend', and no one could.
Don't get me wrong. I like money, and I want more of it. I also understand that Capitalism is a great way to get me there. Real Estate investments won't always come through. I am, by definition, pro-Capitalism...but are there limits! Stock, even internally with employees and investors, should not be traded when they company hasn't made a dime. It sounds too close to a trick being performed at the circus. Only time will tell who are the clowns. ~ p
(Source: TechCrunch)
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