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The challenge is that their market cap (>10mm) demands growth.

• imagist 10y ago
  People demand growth. Market capitalizations do not demand growth. It's probable that you're speaking metaphorically here, but your metaphor is abstract enough as to not communicate any meaning. It's clear that you think someone is demanding growth. Who is demanding growth? When you figure that out it will be much clearer to you what's going on here.
  • mathattack 10y ago
    To justify the market cap, investors are expecting growth. Unprofitable companies only trade at 7 times revenue when buyers (investors) expect them to grow and eventually become profitable. Otherwise you'd be waiting a long time to get your investment back.
    • imagist 10y ago
      So investors demand growth. But not only that, they demand sevenfold growth. That's much less abstract. And it's also hilarious and a perfect example of why Twitter is a perfect example of the tech bubble. Twitter is not going to grow in value sevenfold: in ten years they have not even broken even yet.