Logical argument Twitter market cap of 35 billion not expensive
Google started in a garage in 1998 and is a 300 billion dollar company today Twitter is a unique company that can monetize advertising and is on a google growth trajectory. I think investors think twitter can be a 100 billion dollar company using the google extrapulation.This company's buzz is equal to that of facebook and google so major investors will hold and sit on stock.
seriously don't even company TWTR to GOOLE. Its a disrespect to GOOGLE. at the time Google IPO, search engine was a necessity tool everyone use. The serch engine will continue to be a necessary tool for everyone as well. Who will replace GOOGLE in the future, none. Who will replace TWTR in the future, plenty.
GOOGLE takes over 50% of all ad revenue for online and mobile. The rest are divided among other players with TWTR have a very small percent.
Do you think TWTR will able to compete with GOOGLE? GOOGLE will swatch TWTR like a little fly.
there are 666 million twtr shares at a price of $70...this equates to a market cap of $46.6 billion and they have never even had an earnings report...they are expected to post almost $300 million in losses this year and twitter is not a search engine nor a multi faceted social media site like FB. User engagement is only 5 percent, this is nothing like google, nor is it anything close to facebook. FB's net income is almost 50 percent more than twitters total revenue yet twitter is already at 1/3 the market cap of an insanely overpriced facebook. The argument for greater appreciation of twitter's market cap is beyond ludicrous in any rational sense. In fact, the company may never, ever grow into the current value. This doesn't mean the price won't go higher, it just means that there are plenty of idiots drinking the poisoned kool-aid that think $100 billion dollar companies grow on trees, and they grow to this value in a few short months. Twitter makes 75 percent of its' revenues from the mobile advertising market and the entire global advertising budget last year was $5 billion. Twitter competes with hundreds of companies for a share of that pie and even if they took 100 percent of it, this company would be insanely overvalued....currently they take just over 1 percent of that global advertising budget for mobile. BUZZ doesn't build companies, revenue and earnings do, and while twitter has some revs, they have no earnings and aren't even expected to make a profit for another 2 years if ever. Their revenue growth is slowing dramatically. Momentum stocks bring out a fierce crowd of blind and ignorant fools.
Really? Name just on stock that trades at 66 x revenue. 43 times book, with zero profits. Impossible! Twtr is the most outrages overprice stock anywhere on the market. Hell Amzn FB, Tsla , Nflx never traded 66 x revenue.