| | | Maceng2, Stock Price often has little relation to what is really going on. I'm not even talking about stock price. I'm talking about revenue growth.
Startups are valued on one thing only, and that is the potential to exponentially grow revenue.
Even profitability isn't as big of a concern, because that's a function of revenue AND costs. And costs can be controlled.
Revenue, on the other hand, is a function of product demand. It is proof that there is a market for what the startup is producing.
Back to Xitter, the Muskperger wants to reinvent Twitter, which is why he gutted it.
However, Xitter has lost most of its original revenue base, and there is no sign that Musk has found a new source of revenue growth.
Moreover, Musk killed one of the most recognizable brand names in the market. What a st00pid, st00pid move, all because of a whim.
All of these factor into Xitter's estimated valuation, which by one estimate is around $9.4B.
Like I said, valuing a non-public company isn't an exact science, but there are thousands of people with MBAs who specialize in this black art.
I trust them over some spreadsheet jockey who can't even address Xitter's decline in revenue.
Tenchusatsu |
|
