Prof. Aswath Damodaran is interviewed about valuations of startups
— January 13, 2014
Excerpt from the Economic Times -- "Last year, we saw social media companies going public. Four months ago I was debating an analyst who was arguing Twitter was worth four times more than what it is. I asked why do you think it is worth so much. He said the size of the advertising market is going to be huge. I said yes, but it does not mean Twitter is worth a lot. I don't see the direct link. If you think Twitter is going to be winner tell me who the losers are? The analyst was projecting revenues of Twitter of about $45 billion. I said okay, but the online advertising market is right now only $120 billion."