Are Investors Worried About Twitter’s Volatility?

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Jan. 10 (Bloomberg) –- Adroll President & Co-Founder Adam Berke and Bloomberg’s Ari Levy and Sarah Frier discuss Twitter’s stock being downgraded and its valuation swinging by billions with Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Debut and it has sort of been rocky for the last few weeks.

What is going on?

We have to keep it in perspective.

Twitter is trading for 28 times more than its revenue.

Even at $30 billion, and if someone had said in early 2014 twitter would be worth $30 billion -- you would have kicked them off.

They spent trades at 14 times its revenue and it is profitable.

Linkedin has a smaller market cap and twitter and it is applicable.

It has been in for several more years.

In the greater scheme of things, twitter is still pretty impressive.

You have to expect all facility when you are -- volatility when you are talking about a company that is brand-new.

I spoke to the twitter ceo on the floor of the new york stock exchange the date went public and i asked, when is it time to start focusing on profit?

This is what he had to say.

I think we believe that we have a tremendous amount of investment we want to do in service to the kinds of strategies that we are you know are working.

We have been doing work where twitter is increasingly the second string for the life experience to what people are watching now.

We are continuing to advance in that.

We want to have teams on the ground internationally.

We want to invest in unique regional content internationally.

We want to integrate that into the platform to make sure that we are the public redefine or of conversations.

It is nice to hear his strategy.

But he did not really answer the question.

There have been multiple downgrades this week run analyst.

Are they worried that twitter is not turning a profit?

Investors are completely uncertain.

They do not expect profits until 2015. anything can happen in between.

If you look at the trading activity, paying for protection against volatility in twitter stop -- stock is important.

Let's twitter said that they would make a profit in 2015 or analyst?

Twitter has not said anything about their numbers going forward from the ipo.

We will find out in february.

People are guessing.

They really want to be in a high-growth stocks.

There are not many of those out there.

That is why they are putting money into twitter.

At a certain point, we do not know an off about how much growth we will actually see.

Dialing it back.

When it comes to twitter's advertising product, what do they have?

The weaknesses are few because they are really getting started.

They are rolling out a national advertising platform.

I can give you a recent example of ads tailored to audiences.

In a week, we had over 1000 sign ups advertisers wanting to get on the platform.

There is a lot of interest and a lot of demand.

It is probably the largest out there.

In terms of an engaged audience, -- our advertisers feeling about twitter?

In the next year and two, do they want to be pumping more money into this?

They are still figuring out the best way to leverage it.

They do not necessarily know.

Didn't see a lot of the products that they are rolling out are following the face of layout.

We can see the direction they going in.

Advertisers are willing to follow.

Rackspace but went down this road before.

Twitter had the benefit of look -- facebook went down this road before.

Twitter has the benefit of seeing how they did.

Is there a risk, given what has happened with twitter shares?

There is always a risk with the potential for stock you put a market.

Presumably twitter is doing in such away that there will be a certain amount that unlocks overtime.

The expectation will not be that we will see 25% of the shares outstanding all of a sudden become available for trading.

There have been so much demand for the stock that twitter can turn to weigh one of the folks who are interested in the ipo and say, how about shelling out another couple billion?

Presumably this will be done in a fairly orchestrated fashion.

On february 5, we will take questions for twitter.

What are we expecting?

We are expecting that revenue will probably double in the last quarter based on analysis made by bloomberg.

That is a big deal.

From the last q4. the year-over-year.

It is not totally unexpected.

This is a high-growth stock.

People want to see the revenue growth more than they want to see profit.

Adam, what do you want to see?

I think that they are going down is the right one.

The acquisition of mobile was a signal that they are moving toward a standard that advertisers have gotten behind.

The value of twitter i cannot be understated is the fact that they are one of the few mobile first companies out there.

Once again, the tailored audience might be the best model -- mobile advantage that is out there today.

You are allowed to go cross device.

That is really interesting for people, advertisers, as people navigate it.

They are death cap, mobile phones.

I -- they are on desk top, mobile phones.

But what about television?

To bring those traditional tv dollars into the digital world, they are one of the few companies that has focused on that opportunity to provide solutions to connect live tv with digital media.

It is very powerful.

We will continue this conversation after a quick break.

We will talk about how social

This text has been automatically generated. It may not be 100% accurate.


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