Twitter just went public...after the dust settled, the company was valued at $32 Billion dollars.
For nothing.
No profit. Nothing particularly proprietary. Not much book value (even if they own servers, they constantly become obsolete).
$31 billion built out of nothing.
Facebook was $115 billion. It amazes me.
Something else could literally come up overnight and put Facebook and Twitter out of business....Remember “MySpace”?
I’ve been to little country auctions time and again where an item will get run up for no apparent reason. Is there any way they could sell it again for 300 bucks? Nope. But they’re determined to have it, so they just keep bidding, and the auctioneer and his assistants will just keep prodding them to go higher.
That’s what’s happening in my mind, with twitter and facebook and the like. Because X bid $1000, then Y believes $1200 is realistic. And no one asks why.
Twitter..”.we came across the word ‘twitter’, and it was just perfect. The definition was ‘a short burst of inconsequential information,’ and ‘chirps from birds’. And that’s exactly what the product was.”(From Wiki)
That is exactly what it is: inconsequential information. When someone like Katy Perry has over 46 million “followers” that wait for her to tell them what time she goes to bed, goes to the bathroom, or how her last concert went, then we do have a service that provides nothing important.
Thousands “tweet” about a soccer score; aren’t most of those that will get the tweet watching the game? Nothing produced, just repeated by one person to thousands, then repeated to more. Jeez, what a waste of time and energy.
The only way I would own the stock would be to have it given to me with no restrictions, then sell it the next minute.