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Companies like Twitter are valued at a huge multiple of earnings. e.g. META is 33x earnings. So if you cut costs by $2 billion a year, that would come back as

Companies like Twitter are valued at a huge multiple of earnings. e.g. META is 33x earnings. So if you cut costs by $2 billion a year, that would come back as $66 billion of equity value. It's not exactly that simple, but close enough. As for your other questions, it's coming up on 2 years now. I'd say that's too long to be running on autopilot.

lapcat 3y ago
> Companies like Twitter are valued at a huge multiple of earnings. e.g. META is 33x earnings. Meta is not a company like Twitter. Yes, they're both social media services, but otherwise the comparison is not apt. Meta/Facebook is in the top 10 companies by market cap, has about $117 billion in revenue per year, and has been hugely profitable for a very long time, unlike Twitter, which has barely made a profit ever. > So if you cut costs by $2 billion a year, that would come back as $66 billion of equity value. Um, no, sorry, that's extremely questionable, based on a false comparison, and if it were that easy, Twitter would have already done it before the acquisition.