Re:Software Engineers Say the Job Market Is Getting Much Worse
by lapcat on Thursday January 11, 2024 @08:04AM
(#38951693)
> Companies like Twitter are valued at a huge multiple of earnings. e.g. META is 33x earnings.
Meta is not a company like Twitter. Yes, they're both social media services, but otherwise the comparison is not apt. Meta/Facebook is in the top 10 companies by market cap, has about $117 billion in revenue per year, and has been hugely profitable for a very long time, unlike Twitter, which has barely made a profit ever.
> So if you cut costs by $2 billion a year, that would come back as $66 billion of equity value.
Um, no, sorry, that's extremely questionable, based on a false comparison, and if it were that easy, Twitter would have already done it before the acquisition.
Meta is not a company like Twitter. Yes, they're both social media services, but otherwise the comparison is not apt. Meta/Facebook is in the top 10 companies by market cap, has about $117 billion in revenue per year, and has been hugely profitable for a very long time, unlike Twitter, which has barely made a profit ever.
> So if you cut costs by $2 billion a year, that would come back as $66 billion of equity value.
Um, no, sorry, that's extremely questionable, based on a false comparison, and if it were that easy, Twitter would have already done it before the acquisition.