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$2 billion is not staggering amount. Given it has over 300 Million active users - thats just $6~$7 for user acquisition.

If you want to build twitter today - its definitely going to cost more. It has built a brand - and hundreds of millions of loyal fans.

Question is - is it worth the valuation thats put on the company. Given now they are cash flow positive - that they have lost $2bn in the past is immaterial.

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Just $6-$7 isn't a lot, until you multiply by 300 million and realize that they aren't worth $6 each.

$2bn is absolutely material. If their growth is predicated on setting money on fire, future forecasting has to take that into account. Sure, it is a sunk cost, but unless the fundamentals of acquisition have changed then their valuation is not nearly as high.

And the the fundamentals of acquisition have changed. Unfortunately, in the wrong direction.

Facebook's quarterly net income is in the ballpark of $1 billion. $2B is a reasonable amount of money for a social media monopoly.

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