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Twitter is huge, it costs a lot of money to run. They had a net profit of negative $162.4 million Q1. I don't know what defines an $X0 billion business, but I w
by scandinavian 11y ago
Twitter is huge, it costs a lot of money to run. They had a net profit of negative $162.4 million Q1. I don't know what defines an $X0 billion business, but I would imagine that it would be profit.
- biot 11y agoPut simply, future value. Otherwise a sidewalk lemonade stand profiting 1 cent per glass would be far more valuable than a lemonade manufacturing business which sells millions of bottles a day and pumps all the profits plus additional investment money into manufacturing facilities. At some point, the money-losing lemonade manufacturer no longer needs to ramp up their facilities, they pay down the equipment cost, and generate boatloads of profit. That or they get bought out by a larger player who wants to enter the lemonade market but doesn't want to reinvent the wheel.
- swingbridge 11y agoOf course, but at some point the whole "future value" logic runs flat. The market is losing faith in TWTTR's ability to generate value.
- criddell 11y agoWhat are they spending almost $200 million on each month?