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I am not so sure. They actually have negative earning, GAAP-wise, caused by a huge amount of stock based compensation and acquisition costs. Even with all these
by boomzilla 11y ago
I am not so sure. They actually have negative earning, GAAP-wise, caused by a huge amount of stock based compensation and acquisition costs. Even with all these spending, Twitter is not showing any growth. Twitter will lose more engineering and product talents as the stock price goes down. They can't also use stock to acquire growth either. It's a dead spiral. Twitter has been leveraging Wall street goodwill and hype but I think it's the start of the end.
- theseatoms 11y agoI wasn't aware of the extent of stock compensation costs, but I do realize that they haven't turned a profit. You don't deny the power of the platform, network, and brand themselves, right? I forget the buzzword for this type of non-fungible, unique asset. I guess we just wait and see what sort of valuation it fetches in an acquisition.
- boomzilla 11y agoNo I am not denying the value of the brand and the network, but I don't know how to valuate these assets. I don't see how they are worth 20B, but maybe some others do. In terms of the engineering platform, I am quite confident a similar platform can be built with much less than 1B. Twitter platform is not that special in terms of engineering challenges.