Twitter continues to garner huge amounts of PR and has been able to raise large amounts of money. It has been observed often that they company has no business model and has not been able to lay out any articulate plan for making money.
Twitter’s latest round of funding put its value at $1 billion which is actually not a lot for a company that has at least 30 million users worldwide, a number that is, by most estimates, still rising.
But, Twitter still suffers from a reputation similar to Google’s (GOOG) YouTube and News Corp’s (NWS) MySpace. Each has modest revenue compared to the its number of visitors. Each losses money. And, each does not have any way to improve its revenue performance.
Several years from now, there will be a first tweet from the Moon or Mars. That is, if Twitter is still in business. The tweet from Mars is no more likely to make the company money that the message from the space station on the 21st.
Douglas A. McIntyre
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