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If twitter never makes money, you're mostly right. If twitter eventually makes enough money to justify its share price, you're wrong.
by hyperpape 13y ago
If twitter never makes money, you're mostly right. If twitter eventually makes enough money to justify its share price, you're wrong.
- nine_k 13y agoIn 2013Q3, Twitter made $168M of revenue (not profit). How do you think, how long is it going to take them to cover their current market capitalization of $24670M? After that, they will start making profit for the shareholders.
- runako 13y agoHow long ago was $168m their annual revenue? How long ago was their annual revenue $0? If you're making an argument that their revenue growth has plateaued, that's a separate argument. But their current growth curve is impressive.
- silverbax88 13y agoYour point is valid, but past performance is not indicative of future performance. Just because Twitter went from $0 to $168M (which is chump change on the NYSE), that does not mean they will continue on that curve or that there's proof that they haven't already tapped their market.
- Tossrock 13y agoUnder Bayesian inference, past performance is the ONLY indicator of future performance...
- silverbax88 13y agoBayesian inference would only be relevant with the management team, not the growth of a market. In order for Bayesian probability to be used, it would require other exact or remarkably similar scenarios by which to build on.
- sz4kerto 13y agoNot at all on the stockmarket.
- harryh 13y agoYour comparison of revenue to market cap is nonsensical. Shareholders will make a profit if the stock goes up or if it pays a dividend.