Twitter (TWTR) stock continues to trade at a $17 billion market cap, which is bizarre for a company that had a $635 million operating loss last year.
I can understand investing in a stock that you think has potential that has yet to be realized, but TWTR stock is the classic example of a company whose long-term vision is vague and ill-defined.
I simply don’t understand how all these Twitter users are going to be monetized. Twitter strikes these ad deals with big agencies which bring it revenue, but it is unclear how effective ads are with Twitter.
I don’t see the value proposition with TWTR stock. As the Sharks says on Shark Tank, I’m out. Sell.
As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities. He is president of Asymmetrical Media Strategies, a crisis PR firm, and PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at firstname.lastname@example.org and follow his tweets at @ichabodscranium.