Wednesday, May 11, 2016

Twitter Fritter v.9

Twitter, the business, has been making some progress. Oh, it is still spurting money into oblivion like eighty million broken fire hydrants, but last quarter it was ninety million. Are they still living on the cash fumes of the IPO or are there still suckers buying freshly minted stock despite their proven losing business model?

Here are the updated GAAP net earnings since they went public. For the most recent quarter, a $79.7 million LOSS, but notice the trend line over the last year is up! Do they dare flirt with a break even quarter? That would be unheard of in the history of the company.



Updated fundamentals:
1/8/2013 - twitter IPO stock price $41.65
1/3/2014 - twitter high stock price $69.00
1/13/2016 - twitter closing stock price $18.69, 682.95 million shares outstanding
5/11/2016 - twitter closing stock price $14.59, 694.85 million shares outstanding

Twitter stock change from IPO price: -64%
Twitter stock change from high: -78%

Dividend: 0.00
EPS: -0.79

The number of shares outstanding increased more than 11 million over the last 4 months. About $150 million in stock was given to employees for compensation, meaning Twitter continues the practice of selling toilet paper to the idiot investing public to fund payroll. It looks like that can go on forever, but I am skeptical.

2 comments:

  1. The number of shares outstanding increased more than 11 million over the last 4 months.

    You make it sound like a huge negative for existing shareholders, but I assure you it is not.

    If they increase their outstanding shares to infinity, then their earnings per share rises to $0.00. This would be a huge improvement, per share! ;)

    I guess I just prefer to see the dark side of things. The glass is always half-empty. And cracked. And I just cut my lip on it. And chipped a tooth. - Janeane Garofalo

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    Replies
    1. Hahaha, I hadn't thought of it that way. $0 EPS would be a real milestone for Twitter.

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