Twitter - not quite the investment dream?

By : Administrator
Published 14th November 2014

So Twitter, now a global household name, in full growth mode and generating revenues of nearly £100m a month, doesn't actually make much money

According to the Beeb a US ratings agency has downgraded Twitters worth, shares have slumped 37% so far this year, and apparently positive cash flow isn't expected until 2016 according to the 3rd party ratings agency.

Versus Twitters version which said they became a profitable company for the first time in the final quarter of 2013, excluding one-time expenditures. Sounds like some Tesco accounting to me, or the truth somewhere in the middle!

Apparently 75% of Twitters revenue comes from mobile ads, so their advertising model seems to be working, although I'm not convinced, but may give it a try to test it out.

Certainly seems to be a different way of doing business in the States, raise lots of investor cash, buy in lots of quality resource and keep growing and generating more investment until you burst into profit.

I think the smaller business approach is less stressful, or is it?


Steve Richardson
Gaffer of My Local Services
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