MattMaroon.com

Here’s a humorous little bit of Silicon Valley branding on TechCrunch today entitled “Why Twitter Is Massively Undervalued Compared to Facebook.”

Facebook has struggled with justifying astronomical valuations for years now since they had loads of traffic and little to no monetization. Even now they’ve got traffic comparable to Google, but make in a year in revenue about what Yahoo makes in a month, and their expenses are probably higher per customer.

So to justify the valuations the investors wanted on further rounds Facebook had to rebrand themselves as not just a site where people go to talk to high school friends (because Classmates.com already proved nobody wants to pay for that) but as a utility. Introducing "the social graph". This nebulous term is designed for no purpose other than to make people think Facebook holds some sort of key to making money and all they need is a little time. If you accept the premise that there is such a thing as “the social graph” and that it’s useful to big businesses, then Facebook of course is the next Google and who wouldn’t invest at a $15 billion valuation?

So now Twitter wants in on that action. They’re not just a place where people go to read inane SMSes from Lady Gaga and Justin Bieber, they’re a utility. They hold the “interest graph”.

Next up Zynga is going to claim that Farmville gives them control of the “virtual agriculture graph.” Oh wait, Zynga just makes boatloads of money so they don’t need to make up stupid terms to justify their IPO.

This entry was posted on October 16, 2010 at 5:02 pm and is filed under tech . You can follow any responses to this entry through the RSS 2.0 feed Both comments and pings are currently closed.