Twitter = $ 1 billion?

If you don't think Twitter is worth $1 billion, you have company. I don't either.

The WSJ reports:

"Twitter, the messaging web site that has become an Internet sensation, is nearing a deal to close as much as $100 million of new funding from as many as seven investors, according to people familiar with the deal.

The investors are valuing Twitter, which has yet to generate revenue or finalize its plans for making money, at about $1 billion."

That being said, Twitter might be worth a billion. There are many market participants who can't afford to miss the next big thing, pre orpost IPO, whether it's Google or Salesforce.com or anything else.

The fact that that they haven't figured out a business or revenue model yet is daunting to a rational investor. The fact that they have zillions of users and still have a clean slate to decide on a monetization direction is exhilarating.

It feels like the late 90s again.