How Does Twitter Make a Profit? (companies, stock, value, bill)

[JMadison]

Read today that Twitter is values at $1 billion. That perhaps they would start offering paid for services by year's end.

Seriously? A billion? What is it I'm missing here?

[le roi]

Who led you to believe that twitter is profitable?

[pundit]

Originally Posted by JMadison

Read today that Twitter is values at $1 billion. That perhaps they would start offering paid for services by year's end.

Seriously? A billion? What is it I'm missing here?

There are different parameters to value a company. Profit is one of the most important ones but not the only one. Most of the growth companies are valued based upon people's perception of the profit they will make in future. Most of the online businesses (like hotmail, facebook, myspace etc) belong to this category.. Only time will tell whether the valuation is right or not.

[AlfredB1979]

We had this problem with companies like Amazon in the dot-con bubble.

What did they do to make a profit and earn a lofty stock price?

Nothing.

Seems like we've reached full circle already since then...