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Women work at laptops in front of a Google logo at the Frankfurt Book Fair in Frankfurt, Germany, Oct.8, 2006.
Women work at laptops in front of a Google logo at the Frankfurt Book Fair in Frankfurt, Germany, Oct.8, 2006.
(Torsten Silz/AP)

Why an executive’s orgy photos spell big trouble for social media

Analysts, pundits and private investors are clueless about valuing Twitter Inc. because they don’t look at the fundamentals. I don’t mean the potential for user growth, the likely earnings dilution from huge stock option programs, or even whether Twitter advertising is any more effective than junk e-mail. The real nitty gritty fundamentals are not in Twitter’s IPO prospectus but they were on trial in a courtroom in Paris this week. Google Inc. was ordered to install special filters to its search engine to remove images of a Formula One racing chief at an orgy.