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.