sources: http://twitter.com, http://finance.yahoo.com
Twitter is on fire! Revenue for this quarter was $250 million and the net loss was $132 million. Compared the same quarter in 2013, they doubled their revenue and their expenses went up 5x! Woo Hoo!
The CEO was naturally crowing:
In a statement, Twitter Chief Executive Dick Costolo said, “We had a very strong first quarter. Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth.”Her left out the part about expense growth accelerating faster, but maybe he doesn't know what fueled the expense growth.
The stock price dropped about 10% after earnings were released, which is plain silly. I mean, if they can keep up this performance, the net loss for the year will be a mere half a billion dollars.
Again, I am tempted to extrapolate, but I want to give Twitter more chances to prove me wrong. Will they turn a quarterly profit for the first time in their history? Will their expenses grow less than their revenue next quarter? Tune in next time to the same bat channel to find out.
see also: Twitter Fritter v.1
I think someone put the Twitter Fritter in a 425 degree oven and then forgot about it, because Twitter investors got "burned" for a 24% loss today.
ReplyDeleteForehead. Desk. Twitter stock. Whack. Twitter stock. Whack. Twitter stock. Whack.
Stagflationary Mark,
DeleteLOL. Some very cooked fritters.
I don't get the business model. Create a giant infrastructure and feed tiny adds in the stream while losing money 29 quarters in a row? And the losses are getting bigger. If I had a twitter account, I would tweet "Jumped the shark", but I think investors will get the message soon enough.