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ProfessorGAC

(75,672 posts)

10. It's Not

Reply to Blueplanet (Original post)

Thu Oct 6, 2022, 05:02 PM

Oct 2022

Yes, they're an enormous social media company.
But, they have only around $13.5 in assets. They have only around $5 billion in revenue.
So, they're cap is 3.2x assets, which is inordinately high. This is especially true as Twitter is in a mature phase & they're market capitalization shouldn't be based on potential any longer. Yet, it still is.
But, from a purely financial point of view, they shouldn't be worth $44 billion. But, much of the tech sector doesn't make financial sense.

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Question: Why is Twitter worth 44 Billion-It's a forum like DU? [View all] Blueplanet Oct 2022 OP

Pretty sure it has a lot more users too TheRealNorth Oct 2022 #1

Um, it might have something to do with the fact Twitter has more than 200 million daily users. BannonsLiver Oct 2022 #2

200 Million daily users Blueplanet Oct 2022 #6

But DU has Jerry2144 Oct 2022 #8

I'm afraid it's not worth much then! BannonsLiver Oct 2022 #11

Well, for a start 396 MILLION registered users worldwide... hlthe2b Oct 2022 #3

Wow! Blueplanet Oct 2022 #7

Well, clearly it's not worth $44 billion, otherwise musk would not be stalling unblock Oct 2022 #4

Reach nt Gore1FL Oct 2022 #5

Because data is a commodity Mike_in_LA Oct 2022 #9

It's Not ProfessorGAC Oct 2022 #10

aah! Very interesting. Blueplanet Oct 2022 #13

Well, I Checked! ProfessorGAC Oct 2022 #15

One word. ADVERTISING usonian Oct 2022 #12

Fascinating. I will check the link. Blueplanet Oct 2022 #14

Revenues Are 11% Of Capitalization ProfessorGAC Oct 2022 #17

Yes, I was talking revenue. Market cap is the money held in shares (IIRC) and reflects usonian Oct 2022 #18

We Agree On Most Of That ProfessorGAC Oct 2022 #20

Here's a goodie. I am busy, and won't post separately. Interesting though. usonian Oct 2022 #21

I may be wrong, but most of these things has gone DOWN....eventually. Ferrets are Cool Oct 2022 #16

Companies are famously bought. (and your privacy agreements are void, and your data is theirs) usonian Oct 2022 #19