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How did Twitter increase its valuation from $3.8b to $8b in two months!?
According to Reuters, Twitter was valued at $3.8 billion in December 2010 after raising some $200 million in financing. Only 2 months later, they are now valued between $8-10 billion! How does this type of steep increase occur? What's are the main drivers that would cause the valuation to double in such a short time?
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They released information that said they made $50 million in 2010 and were on track for $150 million in 2011. I guess the rough tripling of revenue led to a tripling of valuation.
Not that I'm saying they're worth their valuation, just that I think that's how they got there.
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