Elon Musk buys and ruins Twitter

[aguero93:20]

Took Amazon well over 10 years to make a profit. every penny was going into building the business.

Yeah, people don't realise this. You want to start a business, you either get investment (either privately or through the banks) or you put your own money in. Very, very few businesses are profitable from the get go and those are 99.9% very small scale. Speculate to accumulate.
Still I think this **** will struggle to make Twitter work at that price.

 

[domalino]

I’d expect Elon musk will make plenty of money from Twitter..

Why?

 

[Phil1]

A simple rule of thumb in life is never trust anybody who admires Musk.
Wrong'uns to a man/woman.

 

[domalino]

Took Amazon well over 10 years to make a profit. every penny was going into building the business.

The thing people misunderstand about Amazon not making a profit is that it wasn't a case of "Oh we'll make a profit eventually when this takes off", it was a case of a very profitable underlying business deciding to spend every penny they made and more on growing the business and undercutting opposition.

That's why no one was ever really worried about Amazon because all they had to do to become profitable was stop expanding so rapidly.

Amazon Web Services is when they started printing money, and that's because they poured money into it when it was a fledgling market to kill off anyone else to the point where there's only 3 big players in the game and Amazon has as much of the market as Google and Microsoft combined.

Twitter is not really anything like Amazon.

 

[waspish]

Are you for real?

The company was failing previously and that was before it was laden with additional leveraged debt. The $4bn turnover is dwarfed by its debt and its expenditure.

Yeah I said it wrong it’s turnover… thanks

 

[waspish]

Post misinformation is the best way to get the facts..

 

[grunge]

The thing people misunderstand about Amazon not making a profit is that it wasn't a case of "Oh we'll make a profit eventually when this takes off", it was a case of a very profitable underlying business deciding to spend every penny they made and more on growing the business and undercutting opposition.


Amazon Web Services is when they started printing money, and that's because they poured money into it when it was a fledgling business to the point where there's only 3 players and Amazon has as much of the market as Google and Microsoft combined.

That's why no one was ever really worried about Amazon because all they had to do to become profitable was stop expanding.

Yep, Most people don't realise that Amazon is more than just the shop. there servers run tens of thousands of businesses.

Twitter is an odd one. I can only assume the value is based on audience. 230m daily active users is a lot of eyes to sell to and a lot of data gathered to sell on. Musk needs to grow that Audience in a big way to get the monetising working to make up the value he paid.

 

[grunge]

What's a blue tick? Is it an important thing to have?

A blue tick is a verified user and is an important part of twitter to know your viewing the real deal and not someone pretending.

Its notoriously hard to get one.

Best example I could think of is City. You could have thousands of people with lots of varying twitter handles all claiming to be the official Man city twitter feed. without the tick it would be impossible ( without comms from the club ) to know the real one.

 

[Mr Kobayashi]

Yep, Most people don't realise that Amazon is more than just the shop. there servers run tens of thousands of businesses.

Twitter is an odd one. I can only assume the value is based on audience. 230m daily active users is a lot of eyes to sell to and a lot of data gathered to sell on. Musk needs to grow that Audience in a big way to get the monetising working to make up the value he paid.

The underlying assets of Twitter will never generate enough income to service turn over long-term profits and service the debt.

The value of twitter to musk is the platform that he hopes to leverage and expand and diversify into other sectors, via a superapp.

The "X" bollocks he has been spouting off about. Hopefully he gets shutdown by competition regulators, as he'll have to strike huge deals with established logistics or delivery apps (possibly even including joint ventures and even more takeovers).

I'd love for the **** to go bankrupt and lose control of his little empire.

 

[Bluemanc100]

The underlying assets of Twitter will never generate enough income to service turn over long-term profits and service the debt.

The value of twitter to musk is the platform that he hopes to leverage and expand and diversify into other sectors, via a superapp.

The "X" bollocks he has been spouting off about. Hopefully he gets shutdown by competition regulators, as he'll have to strike huge deals with established logistics or delivery apps (possibly even including joint ventures and even more takeovers).

I'd love for the **** to go bankrupt and lose control of his little empire.

Unlikely surely when he's worth $219 billion and rising