TechHive: Why Twitter's firehose of user data won't be its revenue salvation

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Why Twitter's firehose of user data won't be its revenue salvation Dec 16th 2013, 11:00, by Mark Sullivan The share price of Twitter stock closed last Friday at $59, more than double its opening price when the company went public last month, and about 25 times the value of the company's 2014 projected earnings, according to Bloomberg.  Analysts and investors are bullish on Twitter's prospects. They're feeling the "tailwinds." Seeing the "upside."  Investors are getting excited because they believe Twitter is cozying up to the advertising community. According to conventional wisdom, Twitter is taking a more liberal approach to how it shares user data with advertisers—and opening new opportunities in targeted advertising—based on the granular information that can be mined from individual tweets. The business proposition sounds great on paper, but Twitter's tight control over user data, its fledgling advertising platform, and its limited reach may put a damper on the company's earnings potential.  Despite their short length, our tweets say a lot about ourselves and our preferences to advertisers. To read this article in full or to leave a comment, please click here Media files: twitteripo_primary-100160220-small.jpg

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