In Twitter We Trust ... Maybe

Photograph by Chris Ratcliffe/Bloomberg

Twitter’s market cap stands at almost $25 billion, as of the close of trading on Nov. 14. Twitter isn’t alone—all of the leading “next-generation digital” companies, whether public or pre-IPO, have extremely attractive valuations. The combined value of all the publicly traded traditional television companies in the U.S.—studios, broadcast networks, TV stations (excluding cable companies)—is roughly equal to Facebook’s $115 billion market cap. Investors have similarly high expectations for pre-IPO companies as varied as Pinterest, BlueKai, Criteo, and Snapchat to one day reach the same staggering valuations.

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