AT LAST: WE ARE SHORT ON THE TWITTER BUBBLE
By: Sebastian Toro
31 Billion dollars is what people or the machines running this market are paying for twitter ($TWTR) today.
31Billion usd for a company that is losing money and only make something like 700 million on revenues.
"Twitter’s revenue for the first nine months of 2013 was $422.2 million" and the wackos are paying 31 billions dollar for that!!
Analysts expect that twitter will make something like 4 billion in revenues for 2018, that's 5 years from now... and even then, at this prices the stock will be way to overvalued
With a 31 billion market cap twitter at least will need to have revs of 10 billion, but the frenzy and crazy people are buying this like a great investment but the truth is that is a GREAT BUBBLE
Today i would like to disclose my short in this Bubble at 52.4 usd. I don't have any idea if this madness is taking the stock even higher, but im sure that sooner or later the prices will crash and the bubble will pop:
I dont need to make a make a very deep analysis of this because top line is very easy to understand that a company with less than 1 billion dollars in revenues and trading at more than 30 times sales, with a projection of 4 billions revenue in 5 years its just a bubble.
that's 7.5 times 2018 estimated revenue!
The dotcom 2.0 or the Tulipmania Reloaded.