It's all government funded for the most part. Just like facebook. Money is made and your info is stored.
Feel like this is just a result of over speculating the internet social media boom. I think Twitter got too much credit for being "hip" and "in" right now, rather than judging it by it's actual business earnings and revenues. I'm avoiding the social media sites all together, for a little while at least, until the prices somewhat stabilize
On the short-term, you'll want to look at the membership base growth. Yes revenue growth has been high, but that's all been priced in. No one really cares if how much they making in revenue or earning right now. The question is whether or not the next earning call, will the meet membership base growth expectations. If not, it'll probably tank another 5-20%.
I agree, if the number of members is increasing, the value will increase as well and that is the big difference between Facebook and Twitter, while Facebook keeps reinventing itself and having more and more members, Twitter has failed in doing that.
These types of companies are pretty much always way overvalued and often don't behave rationally. And their moves are difficult to predict based upon fundamentals or even projections. They tend to move a great deal in both directions largely based upon investor emotions. One thing many of them that often go irrationally high have in common is a history of strong revenue growth. But it could be down into single digits or well into triple digits eventually.
Is that based on the volatility of membership growth or decline? Ad placement? What makes these sort of companies volatile in the first place and so dependent on investor emotions?
It's based on how fast the membership grows, everyone know it's growing but the question is whether it's gonna grow at a rate of 20% or 40%. The reason why it's so volatile is because it's so difficult to value.
That's the story of the markets pretty much no? Everything might seems overvalued, but I think I get what you mean, especially the Internet companies stock prices with no physical base can float more right?
Yes, Twitter will fluctuate a lot. On the whole, I would argue that Twitter is actually safer than Facebook because among my friends, Twitter appears to be much more popular.
Come on, you can't be serious about that Aprax, just because Twitter is more popular among your friends you think it's safer? What about the other millions of users in the world, those don't count?
