SAN FRANCISCO — For Twitter to justify the high valuation of its stock, the micro-messaging company must spread the gospel of tweeting far beyond its current active user base of 232 million accounts.
Different from the fact that Facebook benefits from the markets of north America and oversea half by half, Twitter gets profits from international market in a really low proportion, which allows this become its great opportunity.
Operating well in global market needs huge efforts. It is reported from S-1 that the number of oversea users make up for 77% of the total number, but only create 25% profit. On contrast, Facebook benefits 38% and 49% of its total revenue receptively in 2010 and 2012 from global market.
I believe that even though right now Twitter’s oversea market has grown 111% compared with previous season, investor cannot expect that it can always grow in such an amazing speed. However, the opportunity should not be underestimated. After the establishment of Shanghai Free Trade Zone, service inChina may be widen due to the fact that there’s no wall on Internet in that area.