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Topic: Twitter closes 18% lower on disappointing report (Read 400 times)

legendary
Activity: 1288
Merit: 1000
I never understood why social media stock is so highly rated anyway. But then again I'm no market specialist.

Personally I don't use twitter or any other social media but most people are attracted to this kind of stuff, so for advertising companies its easy to find the exact person they want to target. Especially when people are willingly sharing private informations with everybody. You can look at facebook as big data base, full of informations about who likes what and etc. But twitter is a bit tricky because they earn money when people watch advertising, but many users after creating their accounts didn't log onto them afterwards. Also twitter does not have as much info about their users as facebook, so ultimately they don't earn on advertising as fb.
legendary
Activity: 2422
Merit: 1451
Leading Crypto Sports Betting & Casino Platform
I never understood why social media stock is so highly rated anyway. But then again I'm no market specialist.
That can depend on what each social media platform offers. Twitter offers a really effective way to target people with advertising you buy in their platform. about 85% of their profit comes from advertising.
hero member
Activity: 728
Merit: 501
How did Twitter ever get valued at anything above $1.
It offers no real product or service to sell. Their business model seems doomed to fail.
It could drop 94% and still be over-valued.

Well that's one way to look at it, comparing social media websites to product producers is not a good comparison though. Twitter is one of the most used social media websites, their revenue doesn't come from producing product.

I never understood why social media stock is so highly rated anyway. But then again I'm no market specialist.
legendary
Activity: 2422
Merit: 1451
Leading Crypto Sports Betting & Casino Platform
How did Twitter ever get valued at anything above $1.
It offers no real product or service to sell. Their business model seems doomed to fail.
It could drop 94% and still be over-valued.

Well that's one way to look at it, comparing social media websites to product producers is not a good comparison though. Twitter is one of the most used social media websites, their revenue doesn't come from producing product.
hero member
Activity: 728
Merit: 501
How did Twitter ever get valued at anything above $1.
It offers no real product or service to sell. Their business model seems doomed to fail.
It could drop 94% and still be over-valued.
legendary
Activity: 3066
Merit: 1047
Your country may be your worst enemy
Revenues jumped 74% year-on-year! I guess some analysts were just waiting for too much.
legendary
Activity: 1568
Merit: 1001
Twitter closes 18% lower on disappointing report

Twitter shares closed 18 percent lower after the social media company's disappointing quarterly report leaked early.

Twitter's first-quarter profit beat Wall Street's expectations but sales fell short of estimates. The social media company posted adjusted first-quarter earnings of 7 cents per share on revenue of $436 million.

Financial intelligence service Selerity posted four tweets after 3 p.m. ET Tuesday with what it said were first-quarter earnings, revenue and user figures. Twitter issued a press release about 25 minutes later confirming Selerity's figures.

http://www.cnbc.com/id/102573751
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