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Everyone seems to be missing the irony of the situation. Twitter despite loosing $500M a year etc etc is an almost $30B market cap that is bigger than a lot of

by akumen 13y ago

Everyone seems to be missing the irony of the situation. Twitter despite loosing $500M a year etc etc is an almost $30B market cap that is bigger than a lot of more traditional companies with a business model! Whereas, Outfit7 is a 20-something person operation that is brining in millions in recurring revenue every month (200K on Xmas Day 2011).

tsunamifury 13y ago
Twitters revenue is more than half a billion a year. Outfit7 is nowhere near this. Combined with the global application of twitter versus a children's game, the potential value is far far higher with twitter. Your logic is akin to me saying my small company made six figures this year, so I'm worth more than twitter.
- akumen 13y ago
  I know I am trivialising the issue. I am just annoyed with Twitter having a ridiculous market cap while posting massive losses. It is, after all, a 140 character messaging platform.
  - blowski 13y ago
    ExxonMobil turns black goo into a flammable liquid. That, said ExxonMobil is able to prove that people are willing to a pay lot of money for that flammable liquid, and Twitter can't say that about its product.
    - ulfw 13y ago
      That black goo has to be found, drilled, refined, transported, sold to customers for actual dollars. Whereas twitter hasn't pretty much changed in years even though it has 2000+ salaried employees.
- josefresco 13y ago
  potential value Sorry but that makes me chuckle. If I had a nickle for all of the "potential value" calculations of now dead businesses, I'd have a lot of "actual value" in my bank account. Are we so far removed from the last crash that potential value is still considered equal to actual cash money?
  - akumen 13y ago
    That's the thing. The value is not "potential" as it would have been when Twitter was still a startup. As of right now the company has an about 30B market cap ... as big as Raytheon, for example, and bigger than LinkedIn, Northrop Grumman Corporation, BEIERSDORF, Tesla and T-mobile.
    - josefresco 13y ago
      Share price drops (which can happen for many reasons) and that market cap looks similarly foolish. Market cap is only as impressive as the product or services the company actually offers. The companies you list have real products for sale in mature markets. Twitter is still trying to figure out how to monetize effectively in a very fickle market (free social networking) .. I don't think Northrop Grumman is having trouble figuring out how to make money selling fighter jets.
mbesto 13y ago
Where do you see Twitter "loosing $500M a year etc etc is an almost $30B market"?[0] [0]- https://news.ycombinator.com/item?id=7188006 https://news.ycombinator.com/item?id=7188006

by akumen 13y ago

tsunamifury 13y ago

Twitters revenue is more than half a billion a year. Outfit7 is nowhere near this. Combined with the global application of twitter versus a children's game, the potential value is far far higher with twitter. Your logic is akin to me saying my small company made six figures this year, so I'm worth more than twitter.

akumen 13y ago
I know I am trivialising the issue. I am just annoyed with Twitter having a ridiculous market cap while posting massive losses. It is, after all, a 140 character messaging platform.
- blowski 13y ago
  ExxonMobil turns black goo into a flammable liquid. That, said ExxonMobil is able to prove that people are willing to a pay lot of money for that flammable liquid, and Twitter can't say that about its product.
  - ulfw 13y ago
    That black goo has to be found, drilled, refined, transported, sold to customers for actual dollars. Whereas twitter hasn't pretty much changed in years even though it has 2000+ salaried employees.
josefresco 13y ago
potential value Sorry but that makes me chuckle. If I had a nickle for all of the "potential value" calculations of now dead businesses, I'd have a lot of "actual value" in my bank account. Are we so far removed from the last crash that potential value is still considered equal to actual cash money?
- akumen 13y ago
  That's the thing. The value is not "potential" as it would have been when Twitter was still a startup. As of right now the company has an about 30B market cap ... as big as Raytheon, for example, and bigger than LinkedIn, Northrop Grumman Corporation, BEIERSDORF, Tesla and T-mobile.
  - josefresco 13y ago
    Share price drops (which can happen for many reasons) and that market cap looks similarly foolish. Market cap is only as impressive as the product or services the company actually offers. The companies you list have real products for sale in mature markets. Twitter is still trying to figure out how to monetize effectively in a very fickle market (free social networking) .. I don't think Northrop Grumman is having trouble figuring out how to make money selling fighter jets.

mbesto 13y ago

Where do you see Twitter "loosing $500M a year etc etc is an almost $30B market"?[0] [0]- https://news.ycombinator.com/item?id=7188006 https://news.ycombinator.com/item?id=7188006