While I understand Twitter from a technical perspective, I have never understood why a large number of people use it. The value proposition for an average person is effectively zero. It's great for businesses and celebrities, but one-sided value propositions tend to not work out long term. We are now starting to see that inevitable result play out. You can only defy gravity for so long.
Twitter Reports Weak Earnings and the Stock Is Crashing
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Re: Twitter Reports Weak Earnings and the Stock Is Crashing
#42>Twitter cut full-year revenue guidance to $2.17 billion to $2.27 billion, from the previous range of $2.3 billion to $2.35 billion. I find it astonishing that what is basically a short message broadcast service can generate billions of dollars of revenue. So I think that they have to be doing something very right. Perhaps everyone is anticipating the inevitable next hot thing a little bit too hard.
In other words, they missed earnings by 4.5% (comparing the means of the two ranges) when the original uncertainty range on their estimate was also 4.5%. Doesn't seem very exciting to me.
Re: Twitter Reports Weak Earnings and the Stock Is Crashing
#43I think the writing is on the wall for Twitter. The younger generations are increasingly flocking to snapchat, yik yak, and similar apps. I never hear of anyone using it anymore(college student here). I would have stopped facebook a while back as well if I didn't use OAuth for damn near everything
Re: Twitter Reports Weak Earnings and the Stock Is Crashing
#44I remember that CNN was all Twitter all the time a few years ago. I haven't watched until today for Baltimore info. No mention of Twitter in the last six hours of watching.
Personally, I find Twitter highly overrated. At least 90% of this service seems to consist of inane nonsense, assorted trolls, blowhards and every *ism imaginable. While other services like Reddit (or HN) offer the community a way to curate content and block out the worst nonsense, Twitter buries you with it. The only way to use it is to only follow select people and stick to your news feed. But there the 140 character limit all to often makes it impossible to deliver anything more meaningful than a headline and a link.
Re: Twitter Reports Weak Earnings and the Stock Is Crashing
#45Re: Twitter Reports Weak Earnings and the Stock Is Crashing
#46I never understood Twitter management. Just accepting small and medium sized companies to consume their firehose and charge for that will be enough to significantly increase their earnings. This was the Google AdWords breakthrough.
I really find it hard to believe that firehose revenue would be anywhere close to ad revenue.
Re: Twitter Reports Weak Earnings and the Stock Is Crashing
#47Random question: How do I stop videos from auto starting on Bloomberg? I'm running Safari with no Flash, and have Ad-block on. Video doesn't start, but audio does. Super Annoying.
Disable Javascript or install uMatrix to block frames/XHR entirely.
Re: Twitter Reports Weak Earnings and the Stock Is Crashing
#48I can understand why investment type people like y-axes that don't start at zero - they're usually interested in tiny changes a long way from zero. But for the general public to watch? If you didn't already have an up to date feeling for the price of Twitter shares, then this whole report is meaningless without finding the -$9 and doing the calculation yourself. She even points out that it's now $40 but not what it was before. Are most viewers really that tuned into the market that they know the prices of things before they're in the news?
Turns out this is only something like 20% drop making it the same as February this year! Nothing spectacular at all. It endured a similar crash in October last year and took a few months to recover.
https://www.google.com/webhp?sourceid=chrome-instant&ion=1&e...
Re: Twitter Reports Weak Earnings and the Stock Is Crashing
#49>Twitter cut full-year revenue guidance to $2.17 billion to $2.27 billion, from the previous range of $2.3 billion to $2.35 billion. I find it astonishing that what is basically a short message broadcast service can generate billions of dollars of revenue. So I think that they have to be doing something very right. Perhaps everyone is anticipating the inevitable next hot thing a little bit too hard.
lots of user X advertising = profit valuation typically comes from: profit X magic multiplier where your magic multiplier is functionally a premium based on twitter's future profit potential they're a publicly traded company, and last I remember they report their earnings publicly to shareholders according to http://www.cnbc.com/id/102573751 their earnings were $436 million ---------------- I've noticed more and more…
Coming soon: more ads. From the article: "Under a new agreement, marketers using Google’s DoubleClick advertising service can buy Twitter’s Promoted Tweets."
Twitter is in danger of pulling a Myspace. At Myspace, revenue went down, ad density was raised to compensate, usage went down, ad density was increased to compensate, then usage crashed. For a publicly held ad-based growth company, a down quarter is a disaster. The valuation as a growth company ends and the company starts to be valued based on its operations and earnings. Twitter currently has negative earnings.
Investors are now asking why Twitter costs so much money to run. Their revenue is $1.3 billion a year, yet they're losing money. They don't pay for content, their basic product isn't that complicated, and bulk compute and network costs are declining. Something is wrong there.
Re: Twitter Reports Weak Earnings and the Stock Is Crashing
#50I think the writing is on the wall for Twitter. The younger generations are increasingly flocking to snapchat, yik yak, and similar apps. I never hear of anyone using it anymore(college student here). I would have stopped facebook a while back as well if I didn't use OAuth for damn near everything
i think the problem is in generating revenue. According to their numbers, Twitter's user base is still trending upwards no?