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Re: gixxer11 post# 6660

Wednesday, 07/29/2015 12:07:39 PM

Wednesday, July 29, 2015 12:07:39 PM

Post# of 20423
Yes. Here you have a stock that plunges 13%, and folks try to start a buyout rumor. Ridiculous!

Twitter CFO: Expect no 'meaningful' user growth 'for a considerable amount of time'

Read more: http://www.businessinsider.com/twitter-cfo-anthony-noto-on-stalled-user-growth-2015-7#ixzz3hIScJmbx

Why in the world any company would offer to buy out a company having difficulty in expanding/boosting user growth. Not to mention their P/E is over 50x and I understand. In the technology Industries, P/E are often higher for companies due to innovation. But Twitter's management just lower guidance and warned of user growth. That's a red flag! A big one.

It's nice that Dorsey is trying to build up his credibility with its shareholders and offer the reality check. Some like it. Liking it is one thing, but re-evaluating the situation is another. Thus, you have the drop! This thing will not go up until Twitter monetize its platform and do some major boost on user growth to justify some answers. Again, time is ticking on this.

When Facebook IPO, Mark Zuckerburg stated that he 'will not' push for advertisement or mobile ads. Then the pressure came. Stock pushed down to $19 and he came out and went back on his words. Ads were hugely pushed on Facebook and investors are valuing its 1 billion users. Thus, we see the surge. Twitter's in trouble, because they are not a Social Networking company and they do not have that options like Facebook. They do not have a large user base like Facebook, as well.

This is a short or stay away recommended. IMO. GLTYA!