Courtesy of ZeroHedge. View original post here.
Submitted by Tyler Durden.
Dismissing for one moment the fact that TWTR for all intent and purpose is now trading red for ($43 handle) for most if not all 'retail' investors unallocated at the IPO, Aswath Damodaran, valuation guru from NYU has taken his spreadsheet of doom to the analysts' forecasts for the dot-com-mania poster boy. As the following chart shows, the 140-character platform will have to generate $32 billion in 2023 to be worth $45 per share – that is a 50-fold increase in revenues over the next decade to justify it's IPO-busting current price.
"Twitter is a good company, with the potential to be a great one," he said, but as Bloomber reports, he adds, "but not a good investment," as based on his calculations, TWTR is worth $18 (31% less than its IPO price).
It seems the market is getting it…
Chart: Bloomberg
Compare Twitter to Face Book: "Twitter IPO More Expensive Than Facebook Without Profits," click here.
