Twitter seriously overvalued, auditors warn

Twitter is overvalued and looks like a bubble, a leading firm of auditors has warned. Twitter is making its $18bn stock market debut today.

Tomas Freyman, head of valuations at BDO, said: “I think we’re in bubble territory.”

He added that his firm valued Twitter at “far less than $10bn” and that his view on the company’s worth has not changed.

He said: “This is a company that is trading on 20 times revenues. You just have to ask yourself whether that is appropriate. Apple is trading at two-and-a-half times revenues, that’s a real business selling real products.”

BDO said the firm needed to concentrate on getting more mobile traffic, greater interest outside America, and to reach $1bn a year in sales.

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