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Put simply, future value. Otherwise a sidewalk lemonade stand profiting 1 cent per glass would be far more valuable than a lemonade manufacturing business which
by biot 11y ago
Put 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.