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The revenue comes from investors. A lot of those investors are saying the same thing you are: "Look at all this revenue, they must be doing well!" For those peo
by imagist 10y ago
The revenue comes from investors. A lot of those investors are saying the same thing you are: "Look at all this revenue, they must be doing well!" For those people it's a closed cycle: investors see revenue increase and invest because they see revenue increase, other investors see revenue increase and invest because they see revenue increase.
But this isn't a sustainable business, it's basically an unintentional pyramid scam. Businesses need to make a profit in order for people to receive a return on investment, and Twitter has never, not once, ever made a profit.
- woah 10y agoWhat do you mean the revenue comes from investors? That is by definition investment, not revenue.
- drakonandor 10y agoWhat the heck? The only thing accurate in this post is that Twitter has not yet made a quarterly profit... The rest is pure nonsense, most of it being quite malicious, and some being uneducated misconceptions. Investment is not revenue. Their revenue comes from advertising. Businesses do not need to make a profit in order for people to receive a return on investment. People will always be willing to invest in a company that shows that it may have good growth in the future. Costs can be cut at any time, resulting in an easy profit. The investors care more about growth than profit, as it is a young company. It's really not ok to accuse people of scams without any evidence just because you don't understand how businesses work.