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Breakingviews: Canary in the Twitter blog mine

Wednesday, April 30, 2014 - 02:49

April 30 - The microblogging site's earnings blew through estimates, but shares plummeted as users tweeted less. Breakingviews columnists discuss what effect this could have on Twitter’s valuation.

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Opt out yesterday -- post in its second -- set of earnings of public company it blew through estimates. And the stocks that -- -- -- -- rock units this last night and it seems as if there's a bit of a canary in the Blogosphere is coal mine. Yet the problem is -- and a few new users and he called -- is throwing up but yet if you look at it it's grown 25%. Over the pastor and the reviews -- sounds great but the thing is it's it's it was. The same rate. The year goes 50%. So it's -- FaceBook worthless -- -- FaceBook was the size it was growing at a 150%. Per -- so it's you know it's obviously a lot slower. The crawl of course that Twitter is a 25 billion company or was and that means that it. Investors think it's going to be a gigantic company. If they can't publicly with the OK you know we've we've seen Facebook's that we see other tech companies have done some people love using -- we've seen the numbers and now suddenly. Who fleeced just moments ago and yet it doesn't appear it's going to grow into it again a couple of faced with. The other problem of course is that people aren't using as much as they used to the number of timeline view is that the way they they they measure how many times -- refresh the screen search for something. It's actually occur average user -- 8% every year that means that. People who are addicted Twitter a little less addicted than a year ago and has implications for the -- importance. -- yes. -- because there is up. Sharply as sharply over a 100% you're here. But it's that's problem because it wasn't nearly as good as FaceBook and -- -- they only got about my things four dollars per user -- tickets well over double -- and so that kind of closed the gap and it. The problem is that if -- users are growing that fast people aren't using as much that gap closing a slowdown. And it is a slowdown will before investors thought it would. And exit from Michael because if you look at valuation since two balls train hobby Gillette company. And it's making. Money is the F losing money and that the problems if you're if you're buying company eighteen times sales you're either. He hit vehicle they've got a lot of profit or they're going to have a lot of profit yeah. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The -- just even a few weeks ago yeah. Yeah it probably will turn profitable in the year however it'll be much less than anyone expected so it's not worth anywhere -- -- like -- profit probably not margins which means he's one of valuations and putting on I'm. Yes I -- is this company's probably you know five doing intently and -- company is Lexus well thanks all you had to hit first. -- is gonna at least no more than half the value according to a certain. I will be watching that and will be back with more breaking views tomorrow.

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Breakingviews: Canary in the Twitter blog mine

Wednesday, April 30, 2014 - 02:49