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I use Twitter to keep up on AI and the new space industry (there really is no alternative). Revenue could shrink further and none of that would be lost. Growin

I use Twitter to keep up on AI and the new space industry (there really is no alternative). Revenue could shrink further and none of that would be lost. Growing revenue could let them improve things I don't care about (spaces, video, payments, etc). I guess yay for them if they improve revenue, yawn if they don't.

phyrex 3y ago
What a shortsighted view! Do you think Twitter operates out of the goodness of their hearts and will continue to let you keep up on Ai and new space in the face of losing money? Do you think what’s there will just do to help working without active maintenance? Do you think the servers that make all this possible are running for free?
- paulsutter 3y ago
  Their revenue is massively larger than the cost to run their servers (I used to run 3000 physical servers with a small team, it doesn't cost much) > advertising revenue for the five weeks from April 1 to the first week of May was $88 million
  - saryant 3y ago
    You’re off by a couple orders of magnitude on what it takes to run Twitter.
  - dragontamer 3y ago
    Ad revenue is mostly tied to sales people talking with big companies, addressing their issues. For example: Southwest airlines has a huge number of advertisements across the internet. But Southwest doesn't want these advertisements to appear next to airport disasters. This kind of "custom request" is the bulk of $Millions+ revenues. You need to constantly cater to these company's seemingly arbitrary requests as they try to protect their brand. Twitter fired the team that did this. And when they did, the big companies that care about their image left.
    - deleted 3y ago
      [deleted]
  - deleted 3y ago
    [deleted]
  - kalleboo 3y ago
    > Their revenue is massively larger than the cost to run their servers That never seems to matter when big services shut down. It's more about VC-level opportunity cost ("will this give me unicorn-level returns?")
  - deleted 3y ago
    [deleted]
  - blitzar 3y ago
    Servers may be cheap to run, but the interest bill on ~20bn of loans is expensive.
- softbt 3y ago
  Lol no twitter def doesn’t run out of goodness but if Elon wants to keep the view count high, he’s going to continue to allow any sort of engagement
JumpCrisscross 3y ago
> Revenue could shrink further and none of that would be lost $88mm per month is ~$1bn per year. That yields a low single-digit enterprise value on a generous revenue multiple, which implies—as do Twitter’s bond prices—that the equity is already worthless. (Twitter Blue is revenue irrelevant [1].) [1] https://techcrunch.com/2023/03/24/twitter-blue-subscriptions-spendings-mobile-users/amp/ https://techcrunch.com/2023/03/24/twitter-blue-subscriptions...
- paulsutter 3y ago
  Right, and that would matter if we owned equity, but we don't, so?
  - JumpCrisscross 3y ago
    > that would matter if we owned equity, but we don't, so? Equity being worthless means imminent bankruptcy. That means, at a minimum, operational disruptions, challenges over control and possibly the end of Twitter as an independent concern.
    - paulsutter 3y ago
      That's not how private companies work, and that's not how bankruptcy works either

phyrex 3y ago

What a shortsighted view! Do you think Twitter operates out of the goodness of their hearts and will continue to let you keep up on Ai and new space in the face of losing money? Do you think what’s there will just do to help working without active maintenance? Do you think the servers that make all this possible are running for free?

paulsutter 3y ago
Their revenue is massively larger than the cost to run their servers (I used to run 3000 physical servers with a small team, it doesn't cost much) > advertising revenue for the five weeks from April 1 to the first week of May was $88 million
- saryant 3y ago
  You’re off by a couple orders of magnitude on what it takes to run Twitter.
- dragontamer 3y ago
  Ad revenue is mostly tied to sales people talking with big companies, addressing their issues. For example: Southwest airlines has a huge number of advertisements across the internet. But Southwest doesn't want these advertisements to appear next to airport disasters. This kind of "custom request" is the bulk of $Millions+ revenues. You need to constantly cater to these company's seemingly arbitrary requests as they try to protect their brand. Twitter fired the team that did this. And when they did, the big companies that care about their image left.
  - deleted 3y ago
    [deleted]
- deleted 3y ago
  [deleted]
- kalleboo 3y ago
  > Their revenue is massively larger than the cost to run their servers That never seems to matter when big services shut down. It's more about VC-level opportunity cost ("will this give me unicorn-level returns?")
- deleted 3y ago
  [deleted]
- blitzar 3y ago
  Servers may be cheap to run, but the interest bill on ~20bn of loans is expensive.
softbt 3y ago
Lol no twitter def doesn’t run out of goodness but if Elon wants to keep the view count high, he’s going to continue to allow any sort of engagement

JumpCrisscross 3y ago

> Revenue could shrink further and none of that would be lost $88mm per month is ~$1bn per year. That yields a low single-digit enterprise value on a generous revenue multiple, which implies—as do Twitter’s bond prices—that the equity is already worthless. (Twitter Blue is revenue irrelevant [1].) [1] https://techcrunch.com/2023/03/24/twitter-blue-subscriptions-spendings-mobile-users/amp/ https://techcrunch.com/2023/03/24/twitter-blue-subscriptions...

paulsutter 3y ago
Right, and that would matter if we owned equity, but we don't, so?
- JumpCrisscross 3y ago
  > that would matter if we owned equity, but we don't, so? Equity being worthless means imminent bankruptcy. That means, at a minimum, operational disruptions, challenges over control and possibly the end of Twitter as an independent concern.
  - paulsutter 3y ago
    That's not how private companies work, and that's not how bankruptcy works either