4 ms·

Facebook doesn't really gain anything by acquiring Twitter except a loss-making entity with a very large cross-over when it comes to userbase.

by kondro 12y ago

x0x0 12y ago
twitter is profitable, depending on metric [1]; their rationale is [2]. it's also monetizing better: It generated $1.77 for every thousand timeline views in advertising revenue, up 83% form (sic) the prior year's rate [3] [1] http://www.theverge.com/2014/10/27/7079277/twitter-q3-2014-earnings http://www.theverge.com/2014/10/27/7079277/twitter-q3-2014-e... [2] https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=878170 https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=... [3] http://www.fool.com/investing/general/2014/10/27/twitter-inc-earnings-here-comes-the-sequential-squ.aspx http://www.fool.com/investing/general/2014/10/27/twitter-inc...
- _almosnow 12y ago
  revenue != profit they've been operating w/ a net loss since (probably) forever
- adventured 12y ago
  Twitter is extremely unprofitable, in every possible regard. Operating income: 2013: -$635m; 2012: -$77m; 2011: -$127m Net income: 2013: -$645m; 2012: -$79m; 2011: -$128m The same general result holds true for their most recent quarters. They're losing tons of money and vaporizing cash. Most likely they're going to get severely squeezed when the easy money party ends / the stock market falls. They better either be profitable at that point, or have a back-up plan. They certainly wouldn't be the first dotcom cash burner to get crunched when the easy money stopped flowing.
  - notastartup 12y ago
    Remember porsche started to buy up volkswagon with borrowed money? Remember when market took a major dip in 2008 and the capital was suddenly gone. They had no more runway, and volkswagon ended up buying porsche.
  - x0x0 12y ago
    part of these numbers is, I think, a gaap artifact, particularly related to stock based compensation look at their 2013 annual report, page 41 [1]. $841m cash, $1.391B short term investments, $2.35B working capital. They appear, to my reading, to be cash flow positive. Cash flow positive businesses tend not to go out of business. Again, from their 3Q report: As of September 30, 2014, cash, cash equivalents and marketable securities were approximately $3.6 billion, compared to $2.1 billion as of June 30, 2014 [2] That is not a company in danger of going out of business soon baring an advertising crash. [1] http://files.shareholder.com/downloads/AMDA-2F526X/3578573965x0x742484/A418947A-E065-4822-8BD4-00FA8EB4E795/Twitter_2013_Annual_Report_-_FINAL.pdf http://files.shareholder.com/downloads/AMDA-2F526X/357857396... [2] https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=878170 https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=...
    - _almosnow 12y ago
      assets != profit They had 1.2B for funding, then they IPO'ed, then they even made some weird stuff like [1] (which looked like a really desperate 'running out of cash' decision to me), sum all of that stuff up and you can easily explain those 3.6 billion plus all the other money that they had burn. Sure they won't go out of business soon, but they will when all that money's gone. Twitter will be the flagship example of the second dot-com boom. And they deserve it, so many wrong business decisions during these years that you start giving Thiel's pot-smoking theory a good chance. [1] http://www.forbes.com/sites/steveschaefer/2014/09/12/twitter-takes-advantage-of-soaring-stock-with-1-3b-convertible-debt-offering/ http://www.forbes.com/sites/steveschaefer/2014/09/12/twitter...

Facebook doesn't really gain anything by acquiring Twitter except a loss-making entity with a very large cross-over when it comes to userbase.

by kondro 12y ago

Facebook doesn't really gain anything by acquiring Twitter except a loss-making entity with a very large cross-over when it comes to userbase.

x0x0 12y ago

twitter is profitable, depending on metric [1]; their rationale is [2]. it's also monetizing better: It generated $1.77 for every thousand timeline views in advertising revenue, up 83% form (sic) the prior year's rate [3] [1] http://www.theverge.com/2014/10/27/7079277/twitter-q3-2014-earnings http://www.theverge.com/2014/10/27/7079277/twitter-q3-2014-e... [2] https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=878170 https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=... [3] http://www.fool.com/investing/general/2014/10/27/twitter-inc-earnings-here-comes-the-sequential-squ.aspx http://www.fool.com/investing/general/2014/10/27/twitter-inc...

_almosnow 12y ago
revenue != profit they've been operating w/ a net loss since (probably) forever
adventured 12y ago
Twitter is extremely unprofitable, in every possible regard. Operating income: 2013: -$635m; 2012: -$77m; 2011: -$127m Net income: 2013: -$645m; 2012: -$79m; 2011: -$128m The same general result holds true for their most recent quarters. They're losing tons of money and vaporizing cash. Most likely they're going to get severely squeezed when the easy money party ends / the stock market falls. They better either be profitable at that point, or have a back-up plan. They certainly wouldn't be the first dotcom cash burner to get crunched when the easy money stopped flowing.
- notastartup 12y ago
  Remember porsche started to buy up volkswagon with borrowed money? Remember when market took a major dip in 2008 and the capital was suddenly gone. They had no more runway, and volkswagon ended up buying porsche.
- x0x0 12y ago
  part of these numbers is, I think, a gaap artifact, particularly related to stock based compensation look at their 2013 annual report, page 41 [1]. $841m cash, $1.391B short term investments, $2.35B working capital. They appear, to my reading, to be cash flow positive. Cash flow positive businesses tend not to go out of business. Again, from their 3Q report: As of September 30, 2014, cash, cash equivalents and marketable securities were approximately $3.6 billion, compared to $2.1 billion as of June 30, 2014 [2] That is not a company in danger of going out of business soon baring an advertising crash. [1] http://files.shareholder.com/downloads/AMDA-2F526X/3578573965x0x742484/A418947A-E065-4822-8BD4-00FA8EB4E795/Twitter_2013_Annual_Report_-_FINAL.pdf http://files.shareholder.com/downloads/AMDA-2F526X/357857396... [2] https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=878170 https://investor.twitterinc.com/releasedetail.cfm?ReleaseID=...
  - _almosnow 12y ago
    assets != profit They had 1.2B for funding, then they IPO'ed, then they even made some weird stuff like [1] (which looked like a really desperate 'running out of cash' decision to me), sum all of that stuff up and you can easily explain those 3.6 billion plus all the other money that they had burn. Sure they won't go out of business soon, but they will when all that money's gone. Twitter will be the flagship example of the second dot-com boom. And they deserve it, so many wrong business decisions during these years that you start giving Thiel's pot-smoking theory a good chance. [1] http://www.forbes.com/sites/steveschaefer/2014/09/12/twitter-takes-advantage-of-soaring-stock-with-1-3b-convertible-debt-offering/ http://www.forbes.com/sites/steveschaefer/2014/09/12/twitter...