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What We Learned From Twitter’s IPO: The Value of Innovation Is at an All-Time High

What We Learned From Twitter???s IPO: The Value of Innovation Is at an All-Time High
Photograph by Bilgin S. Sasmaz/Getty Images

Wall Street investors spoke loud and clear when they made Twitter one of the most valuable companies in the world at a $24.9 billion valuation. Twitter has only $500 million in revenue, no major physical assets, and no profit. Its staggering valuation is based on one thing: a great innovation that is changing the way the world communicates.

The initial public offerings of Twitter and others recently demonstrate that we have officially entered the “ideas economy,” where innovative ideas are more valuable than physical assets or existing cash flow.