Are You Overlooking A Big Opportunity?
By: Jamal Carnette
What did Twitter discover?
Twitter discovered it is more than just an advertiser. The real-time nature of Twitter makes it a data mining giant. Matter of fact, the company reported data licensing fees of $47 million during the nine months ended Sept. 30, equal to around 11% of total revenue during that period. Data licensing fees are fees Twitter receives from data partners to access, search, and analyze historical and real-time data on Twitter's platform. Right now, Twitter has five data partners that account for roughly 73% of its data licensing revenue and 8% of Twitter's overall revenue. However, the data appears to be valuable to these partners; licensing revenue was up 36% compared to 2012 with a 30% increase from existing partners.
In addition, the data mining nature and its data licensing business will allow Twitter to grow revenues directly and indirectly for more effective ads. Even the largest company in the world, Apple, has gotten in on this bandwagon by buying Topsy, a Twitter data miner, for millions. Quite simply, this data is inherently valuable.
Where I was wrongWe analyzed Twitter as if it were another Facebook, a mere ad-driven business with the majority of revenues from these ads -- that's currently the case, but that could also change. In fact, it has the potential to be a multi-revenue stream company more akin to LinkedIn than Facebook. If Twitter can grow its data licensing business like big data is growing (58% annualized growth between now and 2017, according to Wikibon), that business could eventually overtake its ad-driven revenue.
everyone getting bullish
should see $80
Tue, Dec 3, 2013, 9:44AM EST - US Markets close in 6 hrs and 16 mins
Ahead of the Bell: Tesla
Tesla shares rise in premarket after German probe into vehicle fires concludes without action
1 hour ago
Tesla Rebounds Despite Federal Safety Probe 24/7 Wall St.
Tesla Falls Amid California Factory Probe: San Francisco Mover Bloomberg
A Badly Needed Win for Tesla Motors Motley Fool
Ahead of the Bell: Thoratec slumps on study Associated Press
Trial by Fire for Tesla True Believers The Wall Street Journal
NEW YORK (AP) -- Tesla shares surged in premarket trading Tuesday after the company disclosed that a German investigation into recent fires involving its Model S sedan found no manufacturer-related defects.
The electric car maker said late Monday that it was notified by German regulators that they were closing their investigation into the post-crash fires in Washington, Tennessee and Mexico and would take no further action.
Shares of Tesla Motors Inc. rose $7.83, or 6.3 percent, to $132 in premarket trading about an hour before the market opening. The stock had risen nearly five-fold this year, but has tumbled about 34 percent in the months since the first fire was reported.
In a note to investors, Jefferies analyst Elaine Kwei said the good news out of Germany should boost confidence that the ongoing investigation by federal officials in the U.S. will also turn out favorably for the company.
Fly On the Wall
November 27, 2013
10:37 EDT TSLA Tesla shares have reached attractive entry point, Deutsche says
Tesla's (TSLA) stock has reached a favorable entry point, Deutsche Bank wrote in a note to investors earlier today. WHAT'S NEW: At current levels Tesla's stock is not pricing in sales from the company's mass market vehicles, Deutsche Bank contended. Expected to be launched in 2017, these vehicles could cause the auto maker's sales volume to at least triple, the firm contended. Tesla also has a number of other upcoming potential positive catalysts, according to Deutsche Bank. These include a favorable resolution of the probe by the U.S. government into fires involving a number of Tesla vehicles, strong orders from China, and further increases in the company's profit margins, the firm contended. Deutsche Bank expects the results of thefederal probe to be favorable to Tesla, and it kept a $200 price target and Buy rating on the shares
will have gains too