Atilla
Legendary member
- Messages
- 20,856
- Likes
- 4,033
Atilla
Legendary member
- Messages
- 20,856
- Likes
- 4,033
http://www.marketwatch.com/story/wh...nvestment-than-underwear-and-pizza-2015-06-11
And yet currently, according to Thomson Reuters, the stock still trades at 100 times this year’s forecast earnings and 50 times those forecast for 2016.
Is this company worth $24 billion, its current market value? One thing we do know: based on the stock’s sharp price movement after-hours on Wednesday, Twitter is actually worth about $1 billion more without Dick Costolo as CEO than with him. Make of it what you will.
And yet currently, according to Thomson Reuters, the stock still trades at 100 times this year’s forecast earnings and 50 times those forecast for 2016.
Is this company worth $24 billion, its current market value? One thing we do know: based on the stock’s sharp price movement after-hours on Wednesday, Twitter is actually worth about $1 billion more without Dick Costolo as CEO than with him. Make of it what you will.
Atilla
Legendary member
- Messages
- 20,856
- Likes
- 4,033
arigoldman
Established member
- Messages
- 626
- Likes
- 10
I'm not sure it's a good investment now, they have an interim CEO and a lot of inhouse problems.
timsk
Legendary member
- Messages
- 8,727
- Likes
- 3,424
I don't do buy and hold but, if I did, I wouldn't touch Twitter with a barge pole. It may be cutting edge and fashionable now, but will it be in twenty years time? The risk of the answer being 'no' is too great for my liking. Either people will tire of writing 140 character soundbites or something else will come along to knock Twitter off its perch. Or both. Besides, assuming Atilla's post about its earnings and valuations are correct, then the balance of probabilities favours a price drop rather than a price rise.
For me, buy and hold would be companies that have been around for ages and, all other things being equal, are likely to still be around in twenty years time - and doing as well as ever. Based on that most basic of requirements, Twitter doesn't doesn't even make the short list.
Tim.
For me, buy and hold would be companies that have been around for ages and, all other things being equal, are likely to still be around in twenty years time - and doing as well as ever. Based on that most basic of requirements, Twitter doesn't doesn't even make the short list.
Tim.
Atilla
Legendary member
- Messages
- 20,856
- Likes
- 4,033
What is Twitter's business model?
What are they selling?
If it's USP is two sentence quick messaging - will consumers who use it for that purpose hang around to glance at the adverts?
It's like a glorified text pager from the 80s which died 30 years ago but some people believe it's worth paying $bn of dollars in the hopeful expectation that in another 100 years someone somewhere will have come up with some business idea which may just make it worth while!
timsk
Legendary member
- Messages
- 8,727
- Likes
- 3,424
Atilla, I suspect that you and I come across as grumpy old gits that haven't the faintest idea about how the modern world works. Time for a confession . . .
I remember seeing one of those 'tomorrow's world' type programs yonks ago when mobile phones were the size of house bricks and the presenter was saying how one day they'd be the size they are today. No problem there, I could believe that. But when she went on to say that we'd be using them to send texts more than we would as telephones - I fell off my chair laughing. I proceeded to ridicule the stupid telecoms companies for wasting their money developing such pointless technology which - obviously - any idiot could see would never catch on!
Based on the above, I expect the OP will load up to the max on Twitter stock.
Tim.
Atilla
Legendary member
- Messages
- 20,856
- Likes
- 4,033
