Twitter Tanks After Citron Warns "Wait Til Congress Finds Out About This"
Twitter is following in the footsteps of Facebook.
Following a rough 10 days for Mark Zuckerberg, we are now seeing Twitter entering into the dagner zone.
Reports are coming out that the microblogging giant garners $400M a year in profits from their "data licensing". This is a fancy way of say their selling of data.
It is an important part of Twitter's business since it operates on an 80% profit margin.
Alongside Facebook and Google, Twitter is now being hauled in by Senate Judiciary Chairman Chuck Grassley (R-Iowa) to a hearing on data privacy on April 10.
Wait until the Senate finds out that:
Twitter Will Generate $400 million THIS YEAR, by just selling user data. Not advertising.
How important is Data Licensing to Twitter? The Scary Answer
In 2017, ad revenue declined to $2.11 billion from $2.25 billion in the prior year while data licensing revenue grew to $333 million from $282 million in the prior year.
TWTR CFO Ned Segal on Q4'17 earnings call last month that data licensing is "a really high margin business". TWTR generated $333 million in data licensing revenue in 2017.
If we assume 100% margin, this segment accounts for almost 80% of total profits. Twitter makes this money from selling user data even from private messages — and yes a lot of "dick picks". To see the underbelly of Twitter just watch this undercover investigation done by James O'Keefe and other Project Veritas reporters:
Dynamics Are In Place to Short Twitter
Twitter's valuation gap with FB and GOOGL has widened to largest spread ever. On 2018 P/E (ex-cash), FB and GOOGL trade @ 16-17x vs. TWTR @ 50x.
Over the last year, insiders have sold/surrendered almost $300 million of stock. The last time there was this much insider selling was in 2015 when the stock was $50 and then preceded to fall to $14 over the next year.
Short interest is at all-time lows at 4.6%
Acquisition by another party is far less likely until these companies clean house with regard to privacy concerns and selling user data.
And the result is - Twitter is tanking...
Citron has gone short TWTR with a target of $25
Non-adapated content found at zerohedge.com: Source
Whether it’s a good news or a bad news I'm still inclined to be bearish in the stock. They don't make money, and don't have a clear path to profitability. If they try to increase their ad exposure to users, it will drive them away. And they are already struggling to gain and retain active users. $21 billion is a rather high valuation for a company that doesn't make money. Really the only thing keeping it from dropping too low is the chance it might get bought out. But if the market recovers and the stock is back up before earnings, I might go short again.
All total nonsense. Andrew Left didn't even bother to find out what Twitter is selling when it gets licensing revenues;most of the revs are to Google and involve selling the tweets which are publically available on Twitter's website itself.
Andrew Left is either a fraud, or dumb, or both.
Steemit.com need to get our act together to able to retain our Steemians and to put in easier steps sign up of new Steemians to to handle to all new increased in signups.
Now, since Facebook and Twitter is in trouble, I expect more users there are going look for better platform like Steemit.com.
What is your thinking on this?
Oh are you sure about that? Now, im know why campaign #deletefacebook and #joinsteemit will be tranding
hopefully all this FUD we are seeing with twitter and FB leads to more and more beginning to make their way to steem.... with steemit's recent 2nd Birthday, it is soon set to soar, as we saw with platforms like this see massive growth reaching their second year in the limelight of social media... I guess only time will tell, but I know I'm here for the long haul
Dynamics Are In area to short Twitter
Twitter’s valuation gap with FB and GOOGL has widened to greatest unfold ever. On 2018 P/E (ex-money), FB and GOOGL trade @ 16-17x vs. TWTR @ 50x.
Over the remaining 12 months, insiders have bought/surrendered just about $300 million of stock. The ultimate time there was this much insider selling changed into in 2015 when the inventory become $50 after which preceded to fall to $14 over the subsequent yr.
short interest is in any respect-time lows at 4.6%
Acquisition via an additional birthday celebration is far less likely except these corporations clean apartment with regard to privateness considerations and selling consumer statistics.
Twitter is down or off
I have relied on Twitter to get the word out about my weight loss work for many years now. I have 6000 REAL Twitter connections I have worked hard for and no fake ones, since I actively root those out.
Recently twitter made changes to their rules and because of this, the 20K in impressions I used to get each day on twitter is now less than 2k. I wrote a post about it because I was so upset the day it happened:
Twitter – You are Dead to Me Now
I still am upset. My connections are not able to tweet either and so everything for me has died over there.
YT has done similar shake-ups. My friends in alt-health get blocked/banned/de-monitized for using words like "fermented" in their titles, tags, or descriptions. Because - you know - if you eat fermented food, your reliance on Rx drugs decreases. I already self-censor at yt just to be able to post at all.
What with all the revelations coming about FB right at the same time -
Facebook – You are Dead to Me Now
I'm not on Instagram, but my friends who are are getting shadow-banned left and right over there since the beginning of 2018.
Those social media sites are invasive, but they are a big method of communication.
Yes, everyone can come to steemit, but the daunting level of work to succeed here makes the 20 or so friends I have recruited in the last 9 months mostly die quick and sink to the bottom of the pool.
Rant not over and thank you for a place to post it.
After playing a part in influencing the huge drop in the prices of cryptoassets with the ban of cryptocurrency activity on their platform, It's time for twitter to have their share of castigation for ill treatment of the public. Both facebook and twitter have grown enormously on sharing private and public information. They track people down using their very own data, knowing what every special date in a person's life counts.. But then they go over board and put the same data in the wrong hands at a fee. Businesses, government agencies use this data for their selfish gains, and though it has come out late, it will reduce on the further implications it has brought. I feel the next few weeks will be haunting facebook and twitter for the rest of their existence.
This is the power of media spreading the word worldwide.
Obviously there are a lot of negative speculation around this matter, but like in any other market, if people start panic with the news the prices will come down...
This is what´s happening more than anything, because companies like Facebook and Twitter are very capable of handling with situations like that.