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But their net income is around -$600 million annually. You can have a business that tells people that if they give you a dollar, you'll give them $1.50. Twitt
by loganfrederick 11y ago
But their net income is around -$600 million annually.
You can have a business that tells people that if they give you a dollar, you'll give them $1.50.
Twitter right now (oversimplified) generates $2 billion in revenue by giving away $3 billion. Of course they could try tightening their financial belts, but that'd probably hurt their growth.
- boomshucka 11y agoThis is an incredibly stupid analogy. Twitter doesn't give it's users money. Twitter doesn't give it's advertisers money. They run a high gross margin business. Your analogy would be a NEGATIVE gross margin business. Their cost base is too high right now given the revenue, but there is no reason to think they need to grow at the same rate. Many profitable companies at one stage ran at a loss.
- btian 11y ago> they give you a dollar, you'll give them $1.50 Not sure if you know it, but that is clearly not Twitter's business model. Twitter's costs are mostly fixed, so if it can generate $3B in revenue, it will be profitable.
- beambot 11y agoThey could recoup $600M pretty easily.... in employee salaries alone if they relocated out of San Francisco.