Live data from Hacker News

Twitter Reports Weak Earnings and the Stock Is Crashing

bloomberg.com

51–60 of 146 posts

Re: Twitter Reports Weak Earnings and the Stock Is Crashing

#51

Earlier quoted context omitted.

"The data was released in a format that only a computer could detect, Christinat added." does anyone know what's meant by this 'format'? USA Today http://www.usatoday.com/story/tech/2015/04/28/twitter-seleri...

I'm thinking that the revealing PDF was linked on an RSS feed. People don't read XML directly, because it looks funny in the browser... b^)

So ... someone tricked a bot into triggering an uninformed crash of the stock? Pretty clever, if true.

Re: Twitter Reports Weak Earnings and the Stock Is Crashing

#52

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.

You read things you like reading.

There's more to be said about why you use Twitter instead of one of the other places you could read things, but the basic "value proposition" is actually simple.

Re: Twitter Reports Weak Earnings and the Stock Is Crashing

#54

Twitter is just a sign of what's to come for a lot of new tech companies. The street wants profit. Once you go public the whole cool startup party ends (unless you can be a cool startup AND hit your profit numbers). It's time to be a real business or pay the price of being an overvalued pile of stinking financial junk.

The downward pressure came from Twitter missing revenue expectations, not profit.

Yes, but the street cares about revenue because they care about profit. If you have high costs you can always just say you had a bad quarter but profit will come when costs come down.

Even if Twitter fired half its people and cut costs like crazy they'd still struggle to justify their current valuation. The street is angry at the reveune numbers since on this current trajectory there's not really a clear path for how the company can generate enough profit to justify its valuation... unless their revenue skyrockets, which is looking less and less likely evey quarter.

Re: Twitter Reports Weak Earnings and the Stock Is Crashing

#55

This probably shouldn't be surprising news but it has some shock value. Twitter is very close to what some would consider a model civic communications platform. I remember hearing one tech pundit refer to it as "citizen's band radio for the 21st century." The idea that such an effective tool needs to generate revenue a la Facebook seems odd, even though I understand that it operates like any other business entity.

I would not consider a proprietary, monopoly-controlled communications platform to be a model for anything.

I don't see why not. You can take the result of some effort and say, OK, this is a model for the kind of result we'd like, but are not currently getting from our more open, idealistic systems. There would probably be many benefits to such, err...open ways of thinking.

Re: Twitter Reports Weak Earnings and the Stock Is Crashing

#56
post #31

Earlier quoted context omitted.

> Victor Anthony, an analyst at Axiom Capital Management, who has a buy rating on Twitter’s stock What's that quote about getting someone to understand something that their job depends on them not understanding?

I googled your exact question and got this: “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”

I think the OP was asking a rhetorical question.

Re: Twitter Reports Weak Earnings and the Stock Is Crashing

#57

I 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

This is one dimension of the problem. I think from the technical point of view having a more efficient stack that cost you less and the change in the system is cheap (aka software engineering time) can make your product more profitable even though your competitors offer more features. This sort of angle is missed quite often in the startup scene, while older mature companies care about it a lot more. A good example would be Amazon.

Re: Twitter Reports Weak Earnings and the Stock Is Crashing

#58
post #50

I 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?

It is still growing, but the momentum has been slowing for over a year. I googled, "twitter user growth" and every result points to disappointing user growth

Re: Twitter Reports Weak Earnings and the Stock Is Crashing

#59

I 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

yik yak is declining this year compared to last school year (see appannie graph). Kik and Skype are big and rising among the teens

Re: Twitter Reports Weak Earnings and the Stock Is Crashing

#60
post #26

>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.

>I find it astonishing that what is basically a short message broadcast service can generate billions of dollars of revenue. Basically a short message service? That's naive. Twitter is a marketing platform with 300m people signed up to receive marketing materials, people who also readily provide the platform with the details of what they like/would likely click on/spend money on, where they are in the world, what age…

I like Stewart Lee's take on it.

"a government surveillance operation run by gullible volunteers, a Stasi for the Angry Birds generation”

Post reply on HN