Twitter’s value has doubled in the last seven months, According to The Wall Street Journal. Twitter is busy raising hundreds of millions of dollars, as high as $7 billion dollars. Last December, the company was valued at $3.7 billion.
Twitter was a company without much of a business plan; however, its value has climbed. What caused this large leap in value?
When Twitter introduced promoted tweets and trends last year, it created another revenue source for the company. Last October, Twitter also announced it would allow small businesses to get in on the advertising action with a self-serving tool.
Unlike many other sites that are going public, Twitter is focusing on building and strengthening its executive team and a solid advertising business. The upcoming advertising platform Twitter is developing will function similar to Google AdWords. Investors also say Twitter’s platform could have the same earning potential as AdWords.