Is Twitter really worth $20 billion dollars? The stock price got crushed last week when the company announced that growth in the number of “tweets” continued the downward spiral that has been in place since 2009. It’s not likely that investors will tolerate slow organic growth for a company with zero profits and a price to sales ratio of 30.
Courtesy: Yahoo finance
The paradox for Twitter seems to be that more could turn out to be less. Twitter users currently send out an estimated 1 billion tweets every two days or 182 billion tweets per year, enough to supply every man, woman, and child in the U.S. with over 600 tweets per year.
How many of Twitter’s oceans of messages actually get read? How many worthwhile or intelligent things can one person tweet everyday in 140 characters or less? What productively engaged person has the time or inclination to read hundreds of tweets every day?
A Wall Street Journal article on Twitter noted that one Twitter user had sent out 9,000 tweets since 2010. Can anybody name one person on planet earth capable of making 9,000 worthwhile comments?
Twitter’s oceans of insignificant tweets might just wind up drowning both Twitter and its users.
Speak Your Mind