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Companies are compared to peer group companies by the banks. For example, small cap semiconductor companies are compared to each other on the basis of P/E, reve
by hkmurakami 11y ago
Companies are compared to peer group companies by the banks. For example, small cap semiconductor companies are compared to each other on the basis of P/E, revenue growth, margins, etc.
What are Twitter's peer companies? Well Facebook is certainly one such company that is publicly traded and its metrics widely available. So Facebook's numbers, and in particular the numbers that Wall Street analysts decide are relevant, become the benchmark stats that Twitter is judged on, even if Twitter actually should not be put into the same basket as Facebook.