Re:Twitter may receive formal bid, suitors said to include S...
by fredguth on Friday September 23, 2016 @12:52PM
(#12566029)
Twitter has existed for 10 years, as you say. How many 10 year old companies have 300mm users and revenue at $2.2 billion and growing at this pace?
Re:Twitter may receive formal bid, suitors said to include S...
by imagist on Friday September 23, 2016 @02:27PM
(#12566850)
This is the wrong question to ask if you're investing, and I've already explained in the parent comment why this is the wrong question to be asking. Usually these things are indicators of profit potential, but they aren't in Twitter's case.
Re:Twitter may receive formal bid, suitors said to include S...
by cstejerean on Saturday September 24, 2016 @12:22AM
(#12569449)
There is no way Twitter couldn't turn a profit on $2B in revenue. But that's not their focus at the moment. Instead they really want to grow the revenue numbers even higher, worrying about the profit later. However they may not be able to increase revenue much higher, and investors aren't really interested in a profitable but stagnant Twitter. But if they wanted a profit they certainly could, starting by right sizing the company rather than pouring hundreds of millions of dollars into R&D that is barely moving the needle.
Re:Twitter may receive formal bid, suitors said to include S...
by vit05 on Friday September 23, 2016 @07:47PM
(#12568709)
I think Salesforce have never had profit. Neither Youtube for Google. The problem with twitter is that people do not believe they could make big money alone and for a long time without be destroyed for someone else in a garage. They still see a company that needs a cash cow that could financial the cost of innovation.
But the greater indicator of potential for profit here is that Twitter has existed for 10 years and has never turned a profit.
Given this, I think that revenue, users, scale, investor love, patents, staff, infrastructure, etc. have all become disconnected from Twitter's actual profit potential. They haven't made a profit, they aren't going to make a profit. I think that the only logical choice is to dismiss the idea that Twitter has value.
But, as I noted, perceived value can be as profitable as real value for an investor. Just don't be naive and mistake the perceived value for real value--naivety will lose you money.