The worth of a user on these social networking websites was found to be around $100, or Rs 6,266, mark. A report by Forbes has shown that Twitter users are currently valued at $110 (about Rs 6,892) given the IPO debut this week. And this is despite the fact that Twitter fans generate the least revenue. Wondering how? This is how the math works here: You take into consideration the stock-market capitalisation by each website, divide the figure by the number of users on the platform and you’ll get the magic number.
Twitter has a $25.5 billion stock market capitalisation based on its trading price of approximately $46.50. It has 232 million active users. The formula shows that each user – at least currently – is worth $110. Accordingly, Facebook’s market cap of $117 billion and 1.19 billion active users sees each user of Facebook being valued at a little more than $98 (Rs 6,140 approximately) As for LinkedIn that has a market capitalisation of $24 billion and a user base of 259 million users, the per-user valuation stands at around $93 (approx Rs 5,827) which is not too shabby.
Of course, one needs to keep in mind that Twitter has only just gone public and these figures may well fluctuate a few months down the line. However, valuation of Twitter users being higher than Facebook ones, despite its larger user-base should set some alarm bells ringing for the social networking website.
Facebook has turned out to be a giant in its own right, as far as digital marketing is concerned and it capitalises heavily on its strong user base. LinkedIn, on the other hand, has been pulling in about $1 billion in revenues in a year. Both these social networking websites would do well to be wary of Twitter, despite its revenue being way lower.