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Revenue not the same thing as profit Twitter has only made a profit in 2 out of the last 11 years https://www.wolframalpha.com/input?i=twitter+profits+per+yea

Revenue not the same thing as profit Twitter has only made a profit in 2 out of the last 11 years https://www.wolframalpha.com/input?i=twitter+profits+per+year https://www.wolframalpha.com/input?i=twitter+profits+per+yea...

brotoss 4y ago
Now do Amazon
- Drakim 4y ago
  As far as I understand Amazon makes a deliberate choice to reinvest their profit into research, marketing, etc, with the promise that it will grow more in the future. Musk has been very upfront that Twitter is bleeding money (hence why he is firing so many people), it's not simply that a healthy profit margin is being reinvested.
- kulahan 4y ago
  Amazon has been profitable all years except 1 since its first profitable year, if I'm remembering correctly.
dragontamer 4y ago
The Twitter Buyout is structured as a $13 Billion loan. That means that Elon Musk's Twitter Buyout costs $1.3 Billion/year _ON TOP_ of all the other costs of Twitter. If Twitter was "barely profitable" in 2021, they're now $Billion+ short / year. That has nothing to do with "old Twitter" decisions, and 100% to do with how Elon Musk structured the buyout. Presumably, you're supposed to assume that Musk knows what he's doing and that he has a plan to make $1.3 Billion in profits (to break even on the loan) and then go beyond (to make profit on his $44 Billion investment). But... I'm honestly not seeing it.
nemothekid 4y ago
Your graph doesn't really counter the parent's point. The profit line was trending upwards 2020 was their most profitable year. It certainly looks like the business was becoming sustainable.
- codeulike 4y ago
  It certainly looks like the business was becoming sustainable The downturn in early 2022 hit them badly. They were losing money again when Elon bought them (one of the reasons he tried to pull out of the deal) Admittedly the way he structured his buy out made it worse by adding more debt.

brotoss 4y ago

Now do Amazon

Drakim 4y ago
As far as I understand Amazon makes a deliberate choice to reinvest their profit into research, marketing, etc, with the promise that it will grow more in the future. Musk has been very upfront that Twitter is bleeding money (hence why he is firing so many people), it's not simply that a healthy profit margin is being reinvested.
kulahan 4y ago
Amazon has been profitable all years except 1 since its first profitable year, if I'm remembering correctly.

dragontamer 4y ago

The Twitter Buyout is structured as a $13 Billion loan. That means that Elon Musk's Twitter Buyout costs $1.3 Billion/year _ON TOP_ of all the other costs of Twitter. If Twitter was "barely profitable" in 2021, they're now $Billion+ short / year. That has nothing to do with "old Twitter" decisions, and 100% to do with how Elon Musk structured the buyout. Presumably, you're supposed to assume that Musk knows what he's doing and that he has a plan to make $1.3 Billion in profits (to break even on the loan) and then go beyond (to make profit on his $44 Billion investment). But... I'm honestly not seeing it.

nemothekid 4y ago

Your graph doesn't really counter the parent's point. The profit line was trending upwards 2020 was their most profitable year. It certainly looks like the business was becoming sustainable.

codeulike 4y ago
It certainly looks like the business was becoming sustainable The downturn in early 2022 hit them badly. They were losing money again when Elon bought them (one of the reasons he tried to pull out of the deal) Admittedly the way he structured his buy out made it worse by adding more debt.