The Silicon Valley in 2010 has seen major profits flowing into most of the private companies to the extent that their net worth has doubled and trebled in some cases. Today, Facebook and Twitter are one of the fastest growing Internet companies and these reports are backed by stats and figures, all from inside sources. However, share trading of these private companies are limited to the private brokerage firms. So, what fuels this rise and are these figures accurate?
Most of these figures are mere speculations. They have a good chance of being only partly true because these are not public companies. News on these companies is spread through word of mouth. However, what is true is the fact that the revenues have indeed gone up. This is reflected in the number of visitors to these web-based services. An increase in users can be safely linked to an increase in revenue. Recently, Yahoo lost ground to Facebook over the Internet, which is a worldwide phenomenon. It was already topped from the position of the largest Internet company in the US a few days ago. This is further indication of the shady facts.
In a year when Facebook and Twitter are making profits rapidly, there are other companies as well who are facing a tough time. Yahoo has lost more market share and Digg, is reported to have lost around 70 million USD of net worth this year. Another company Groupon made a remarkable profit from a failed deal and has gone up to thrice its net worth, now at $3.7 billion USD. According to a report at Financial Times, the revenue of the top 10 private companies has gone up by around 50% in the last few months. In short, the year 2010 has been beneficial for all Silicon Valley giants.