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Twitter has a $25B market capitalization which is not the same as saying that the company is worth $25B. $4B ($3B, actually) cash in the bank are not so cool if
by _almosnow 12y ago
Twitter has a $25B market capitalization which is not the same as saying that the company is worth $25B. $4B ($3B, actually) cash in the bank are not so cool if they're loaned and you have to pay them back eventually, with interest. And finally, having revenue does not imply being profitable.
- mikeyouse 12y ago> Twitter has a $25B market capitalization which is not the same as saying that the company is worth $25B. Tautologically, that's exactly what it means. > $4B ($3B, actually) cash in the bank are not so cool if they're loaned and you have to pay them back eventually, with interest $3.6B with $350M in receivables actually. Their debt is convertible debt (which won't impact their cash) at 0.25% and 1%. > And finally, having revenue does not imply being profitable. It certainly doesn't but Twitter has positive Operating Cash Flows and the market thinks they'll return $25B in PV to equity, so I think I'll side with the market on this one.
- _almosnow 12y agoOk you win, haha. Still, I believe that Twitter will not make it. We'll see what happens.