Twitter has 412 years in cash to fix itself

[UK2K]

Twitter's (TWTR) stock is crashing. Management is in upheaval. But the micro blogging site has one giant thing going for it — $3.5 billion in cash — which buys it lots of time.

Shares of Twitter are down 65 cents, or 3.6%, to $17.19 Monday after CEO Jack Dorsey said four top executives were leaving the company. The stock is now down 68% from its highest point over the past 52-weeks and off 55% over the past year. The stock is indicating a serious situation for the company.

Investors seem to be preparing for the worst — but the company's financial standing indicates it has plenty of time to get things right: 412 years to be exact. Twitter — like many of the most valuable recent technology initial public offerings — has a giant advantage: Cash. And lots of it. The company ended its most recently reported quarter with $3.5 billion in cash and investments, says S&P Capital IQ. If the company only burns $8.5 million a year in free cash — as it did the past 12 months — that's enough cash to last 412 years.

Anyone invest in Twitter? Stock is down 68% since the peak. Im sure a ton of people lost money on it, and the stock has fallen even further since their leadership left.

The question is, what else can they do? The monthly users have gone up every quarter.

http://www.gannett-cdn.com/usatoday/editorial/graphics/2016/01/012516-Twitter-Execs.V3.jpg

[Sarcastic]

Probably a good time to buy. They'll be bought out if anything. They have a great product, but no one has figured out how to properly monetize it yet. Someone will eventually.

[Draz]

Never used twitter df

[~primetime~]

Tech stocks always pretty risky...BUT, Twitter is still growing.

Might be a good risk to take.

[~primetime~]

wait till it's done falling...

[Nick Young]

Twitters pro-censorship shit has damaged the brand.

Nothing is stopping another social media platform from rising up and doing the same shit as twitter, people will leave it if their attempts to monetize it are too annoying.


Twitter isn't untouchable. Back in the day, no one though AOL messenger, yahoo or Myspace would fall either.

[~primetime~]

http://2us9vjrl2kf1np7bx397xl07.wpengine.netdna-cdn.com/wp-content/uploads/2016/01/twitter-revenue-growth-by-quarter-chart-january-22.png

Stock isn't reflecting reality...Twitter still hasn't hit it's peak

[Yoda]

Know that money comes in increments of years I did not know.

[Velocirap31]

It's currently valued at 11.56 billion. There are plenty of stocks trading below the value of cash they have on hand. So if you buy twitter stock right now, you think it's worth 8 billion as a company.

Facebook is currently valued at 275 billion though, wow. It currently has 1.55 billion users, so if you compare market value with the number of users:

Facebook: 275/1.55 = $177/user
Twitter: 11.56/0.32 = $36/user

Twitter's value per user is 1/5 that of Facebook. Since revenue is growing like a dream and they have centuries of cash. I'd argue that Twitter is very undervalued right now. I don't own any Twitter stock btw, but maybe I should.

I have to change this actually:

Facebook has 1 billion 'active' users compared to Twitter's 320 million active users. The value per user is actually $275 for Facebook making a greater gap between the two.

[~primetime~]

Supposedly they are going to expand tweets from 140 characters to 10,000 soon.

They are definitely in the processes of shaking shit up.




I'm going to keep my eye on this for a few weeks...but this one is a little scary

[Jailblazers7]

It's currently valued at 11.56 billion. There are plenty of stocks trading below the value of cash they have on hand. So if you buy twitter stock right now, you think it's worth 8 billion as a company.

Facebook is currently valued at 275 billion though, wow. It currently has 1.55 billion users, so if you compare market value with the number of users:

Facebook: 275/1.55 = $177/user
Twitter: 11.56/0.32 = $36/user

Twitter's value per user is 1/5 that of Facebook. Since revenue is growing like a dream and they have centuries of cash. I'd argue that Twitter is very undervalued right now. I don't own any Twitter stock btw, but maybe I should.

I have to change this actually:

Facebook has 1 billion 'active' users compared to Twitter's 320 million active users. The value per user is actually $275 for Facebook making a greater gap between the two.

Yeah, but look at the difference in earnings. FB learned how to generate revenue and Twitter didn't.

[~primetime~]

Yeah, but look at the difference in earnings. FB learned how to generate revenue and Twitter didn't.
yeah it's because the average FB user is on it all fckin day and the average Twitter user is on it 10 minutes or so.

shouldn't look at FB here though...unless their stock is tumbling too

[Draz]

How is FB still doing good? No one really uses this shit it's like an abandoned site

[~primetime~]

How is FB still doing good? No one really uses this shit it's like an abandoned site
parents and grandparents have taken it over...

this sums up the scene:

https://pbs.twimg.com/media/CRRPaQ-UcAA_PaA.jpg

[KyrieTheFuture]

I still don't understand why FB and Twitter are valuable

[plowking]

I still don't understand why FB and Twitter are valuable

Think about the amount of clicks, scrolls, page browsing you do on them... A lot of ad revenue...

[KyrieTheFuture]

Think about the amount of clicks, scrolls, page browsing you do on them... A lot of ad revenue...
:confusedshrug:
Ad Blocker Plus

They ain't making a dime off me. I don't even have a twitter.

They provide nothing of real value. Unbelievable to me that they are "worth" so much.

[FillJackson]

They provide nothing of real value. Unbelievable to me that they are "worth" so much.

You may want to look here
https://www.facebook.com/business/help/433385333434831

[oarabbus]

How is FB still doing good? No one really uses this shit it's like an abandoned site


I still don't understand why FB and Twitter are valuable


Lol.

Facebook bought WhatsApp, Instagram, Oculus VR, and dozens of other companies, and is heavily invested into R&D. You're sorely mistaken if you solely associate Facebook with www.facebook.com

[KyrieTheFuture]

Lol.

Facebook bought WhatsApp, Instagram, Oculus VR, and dozens of other companies, and is heavily invested into R&D. You're sorely mistaken if you solely associate Facebook with www.facebook.com
Yes they bought, but how they acquired the original value amazes me. I understand they do more than advertising, but the fact that just being a space for ads can make that kind of money, to purchase all the other companies, amazes me.

[9erempiree]

Pretty fair price considering that these companies do not produce a tangible product unless they have diversified their assets into tangible assets and getting a good ROI.

Lets face it...users are their assets.

They owe us money.

[Bosnian Sajo]

Watch Facebook go out and buy Twitter next, just like they did with Whatsapp and Instagram. Facebook paid $1 Billion for Instagram (2012) and a staggering $19 Billion for Whatsapp (2014). I wonder what the price of their stock was in 2005...bet that stock made a lot of people rich.

[Bosnian Sajo]

Yes they bought, but how they acquired the original value amazes me. I understand they do more than advertising, but the fact that just being a space for ads can make that kind of money, to purchase all the other companies, amazes me.


People STAY glued to their phones on Facebook/Twitter/Instagram, anything social really. What better place to place an Ad? Of course there are 10's of thousands of companies vying for Ad space, of course they are going to have to pay a pretty penny to get their spot. And with Facebook buying out the competition, they are quickly becoming the people who set the price.


Mark Zuckerberg is a genius, not only in the Tech field, but in the Business field as well. And he is only 31, $46 Billion net worth...this dude is gonna rule the world one day if he keeps this up.


I bet Tom from myspace is kicking himself right now.

[SexSymbol]

How is FB still doing good? No one really uses this shit it's like an abandoned site
Are you, by any chance, amish?

[UK2K]

Yes they bought, but how they acquired the original value amazes me. I understand they do more than advertising, but the fact that just being a space for ads can make that kind of money, to purchase all the other companies, amazes me.

I don't have a Twitter either but....

There's obviously value when 100,000 people a minute are seeing your advertisement.

Think I may buy a few shares for fun. Want to buy Sirius XM too.

[Jailblazers7]

FB has a much richer collection of user information and can target ads better than TWTR so their ad space is more valuable and more people see it. Plus they have branched out and made a lot of smart moves. Twitter still can't seem to figure out what to do with its own product right now.

Also, people confused about FB being worth so much...it's the same reason as Google. Google is still generating a huge majority of its revenue from ads.

[oarabbus]

Are you, by any chance, amish?

:oldlol:

[bigkingsfan]

:confusedshrug:
Ad Blocker Plus

They ain't making a dime off me. I don't even have a twitter.

They provide nothing of real value. Unbelievable to me that they are "worth" so much.

They're always going to make money off of you just by being part of their community.