Twitter's True Potential

It makes no sense to evaluate social media companies the same way you would evaluate a retailer or a bank, yet that's exactly what is happening with Twitter (TWTR). With a market cap of $29 billion and anticipated 2014 revenue of just $1.1 billion, the company is overvalued, according to the naysayers. Worse, Twitter has never turned a profit and is unlikely to do so in 2014, so why own it?

Social media bears only see this sector for what it currently is and not what it's becoming. For example, Twitter generates about 90% of its income from advertising revenue, so it's natural for analysts to focus on that area....507 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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