Valuation is thought of as relative valuation and absolute valuation. On an absolute value many stocks in the tech arena such as Amazon appear to be overvalued. Its only on a relative value metrics that analysts can justify many of these nosebleed values. And money is money as proven by Microsoft’s astonishing all cash offer of $26.2 billion for LinkedIn. That begets the question, since Twitter is up for sale, what’s it worth? On a relative value it may be worth far more than it is currently trading at.
| Company | Active daily users | Market Cap | Price per User |
| 350,000,000 | $ 16,645,000,000 | $ 47.56 | |
| 106,000,000 | $ 26,200,000,000 | $ 247.17 |