AllFacebook InsideFacebook InsideMobileApps InsideSocialGames SocialTimes LostRemote TVNewser TVSpy AgencySpy PRNewser MediaJobsDaily UnBeige

Twitter Is Valued At 50x Its Revenue [Infographic]

Everyone wants to know whether we’re in a tech bubble or not right now, and this infographic puts things into a bit clearer focus. Take a look at what the largest social media and tech companies are worth, and how their valuations compare to their revenues – and note that Twitter is the most “overvalued” in terms of revenue to valuation ratio.

As the Atlantic points out, LinkedIn has the highest price-revenue ratio of any stock in the world, as its $200 million in sales in 2010 translated to a $9 billion market cap when it went public this year.

The other companies on this infographic tell a similar story, whether they have gone public or not. Facebook, everyone’s social media investment darling, has an annual revenue of about $2 billion and a valuation of about $75 billion – making it valued at 37.5x its revenue. Groupon, too, is valued at 32.8x its revenue, with a valuation of $25 billion and annual revenue of $760 million.

But Twitter takes the cake for highest revenue-valuation ratio. It is valued a whopping 50x higher than its annual revenue, with a recent valuation of $7.7 billion on the secondary market and revenue of only $150 million last year.

The “Is There a Tech Bubble” infographic comes to us from GPlus, a community of academics and professionals. You can take a look at the huge discrepancies between valuation and revenue for some of the largest tech companies of our day below:

Mediabistro Course

Web Analytics

Web AnalyticsStarting July 30, master Google Analytics to build traffic and increase sales for your brand! In this course, you'll learn how to use metrics to develop a digital strategy for your business, determine what to look for in analytics reports, use your findings to improve your online initiatives and more. Register now!