Twitter shares fell nearly 20% Tuesday night after a financial service company posted Twitter revenue, first-quarter earnings, and user figures:
Revenue jumped 74 percent from the year-earlier period, but the total was worse than even the most pessimistic of the 36 analyst estimates compiled by Thomson Reuters.
The company’s second-quarter revenue outlook of $470 million to $485 million was also well below the average Wall Street forecast of $538 million.
“We anticipate the factors that affected our first-quarter results will also affect our 2015 guidance,” Twitter CEO Dick Costolo said in the company’s earnings call.
Monthly users went up and advertising revenue actually skyrocketed by 80% but the stock got clobbered after hours.
When it comes to social media sites like Twitter, the thing that always amazes The Mayor is not the increase in revenue they seem to turn every quarter, but the fact that their revenue is more than 1 cent. The Mayor can’t figure out how any of these sites make actual money. Do they make it by clicks? If so, does anyone know anyone, ever, who has actually clicked on one of their ads? Other than by mistake, of course.
How does Twitter make half a billion dollars not producing anything but clicks, and Facebook makes a magnitude of 10x what Twitter makes by actually not selling anything but clicks?
The Mayor knows there is more to it than that, but really there isn’t that much more to it than that.
The fact that social media sites make anything is astounding. They produce nothing. They can’t even outsource jobs to China because there aren’t any jobs to outsource.
Twitter, Facebook, Snapchat, LinkedIn, Pinterest, Instagram, Flickr – they are all worth billions, but eventually they will all have the same place in history alongside Myspace.