Not all tech news is positive, reports the San Francisco Business Times. Twitter’s stock fell more than 15 percent today in after-hours trading .
Though Twitter is growing quickly, doubling its fourth quarter revenue, it still accounts for a tiny portion of the overall digital ad market — just 0.5 percent of global digital ad revenues in 2013, compared to 5.7 percent for Facebook and an overwhelming 32.4 percent for Google.
According to eMarketer, Twitter’s share is up from 0.3 percent in 2012. MORE.
No bubble, eh? How can Twitter be worth billions and not show any profit yet?
Because markets anticipate events. What you already know is already priced in.
What you already know is in a constant state of flux.
Investors dump Twitter stock as results divide Wall Street – Reuters
It’s still 35% higher than it was just 3 months ago. I suspect investors can live with that.
But can they — and you — live with a diminishing QE2 to prop up historically overvalued assets?
What will happen if/when another $10 billion, $20 billion, $30 billion, or even the whole remaining $65 billion dollar/per month QE2 taxpayer subsidy for welfare for elite fat cats is cut? Or do you think QE2 will just remain in place forever — a permanent bailout of the rich? I mean, they deserve it, right?
I personally would not invest in social media stocks like Twitter, Facebook and LinkedIn because I don’t understand them.
But if you’re asking me whether the S&P 500 can survive a gradual relaxation of QE then,yes I do. There’ll be blips but that is why God invented options and hedging.
And the new Fed chief is a softie.
Yeah, but you know enough about them to characterize yourself as not understanding them. I’m pretty sure that’s already put you in the fourth quintile, and maybe the fifth…
Knowing what you don’t know is key to investing.
BTW, the Dow is up 150 points right now so clearly the Twitter hiccup is not seen as broadly-based.
You don’t understand social media, or you don’t understand bloated P/E ratios? Or both?
If valuing stocks was as easy as looking at P/E ratio’s, we’d all do it. They only make sense to me when comparing stocks in the same industry, and even then with caveats.