Hmm, I thought everybody did? I guess wall street really does have a clear view of this whole tech scene.
I still don't question Twitter's ability to generate revenue, because they will generate over $2 Billion this year. I question their ability to meet Analyst expectations, sure, but they already have revenue. Billions of dollars of it.
They beat their earnings estimate by 57% and missed their revenue estimate by 4.7%. This is by no means the definitive death knell so many people on HN are making it out to be. Wall Street is a crazy place and expectations were sky high and yes the stock dropped a lot, but Twitter will survive and is doing just fine.
It seems like HN is convinced the company is eternally doomed and will never make money. That notion has been pretty much proven false. Twitter makes money; they're just behind where people thought they would be.
And it literally won the war. They take the lions share of profits in the personal computer market and they have a huge moat. You could argue they will be in trouble when personal computing devices stop changing so quickly and are fully commodified, but I can't imagine that's within the next two decades. Honestly I find it weird their P/E isn't higher.
Their homepage redesign, which just launched, is the first step toward what could be huge growth. Evaluation of the company will shift from active users to passive audience. Twitter ads can reach them both just fine, and there are way more passive watchers than tweeters.
What's that quote about getting someone to understand something that their job depends on them not understanding?
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”