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How is Twitter not a good business? It's still worth $11 billion.
by econner 10y ago
How is Twitter not a good business? It's still worth $11 billion.
- niftich 10y agoAny public company's valuation is the sum of every vested actor's belief in the stock's promise of (future) value. It definitely doesn't mean that Twitter has $11 billion in the bank. If anything happens that makes vested individuals doubt that Twitter is worth as much as it is, its value will drop, as it did right after the Q2 2016 earnings report was released.
- majani 10y agoIt's never made a profit.
- econner 10y agoThis is a good point. So I looked up some Twitter financials. In 2015 they posted a Net Income of -$521.03M and EBITDA of -$137.21M. I don't exactly understand how those two numbers can differ so much, but either way they're pretttty bad.
- tim333 10y agoI was curious as to why the two numbers differed so much. A lot of it seems to be deprecation charges on servers and networking gear.