A staggering amount of money

By 

Twitter Has Lost a Staggering Amount of Money

“When Twitter went public back in 2013, it was an unprofitable company. More than two years later, that hasn’t changed. In fact, the company revealed in its annual 10-K filed Feb. 29 that it has lost more than $2 billion in total since launching a decade ago.Twitter had already accrued more than $400 million in losses before going public, but that figure exploded upward after its IPO, largely due to stock-based compensation awarded to employees. The company lost $520 million in 2015 alone.

Like many companies, though, Twitter prefers to talk about adjusted earnings, which exclude stock-based compensation and some other expenses. These are the figures Wall Street investors tend to focus on. By that measure, Twitter had a net income of $277 million in 2015.

But anxiety over Twitter today has less to do with whether or not the company can earn money now and more to do with its prospects in the future. Wall Street appears skeptical that Twitter can effectively grow its user base, serve those users more ads and substantially increase its revenue. The company’s stock sunk below $20 per share at the start of the year, off from a high around $70, and has yet to recover.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: