29 Apr Twitter Is A Growth Stock, But Where’s The Growth?
Twitter finished its first day of trading on November 7, 2013 at $44.90. After a lackluster earnings released Tuesday, Twitter opening trading today at $40.22. For a “growth stock” that’s a return of about 11%!
The problem for Twitter per their earnings release was a shortfall in revenue and further questions about where the money will come from. And more.
Does anyone effectively use their new ad platform? Have you ever clicked on a Twitter ad?
They do project over 2 billion in revenue (wow!), but why are their costs so high that they can’t turn a profit?
Their user base is growing, but not at the multiples investors would like.
At a >10 multiple, the stock is already priced for perfection. And without a better strategy – other than to cram more ads into the feeds, which will drive away users (Myspace anyone?) – how is Twitter going to rebound?
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