Lance ---
Some of these companies like Twitter are very UNPROFITABLE... Twitter posted a loss of MINUS 38% operating margin...
But there's 500 MILLION TWEETS PER DAY.... of course part of the loss is that they need complex back end solutions to handle that volume (part of how I made a small fortune in 2010 was owning part of a company that provides solutions like they need).... and staffing ramp up. That has to come FIRST so for a while - they are losers..... but still have an immense audience of eyeballs -- and advertisers willing to pay for this MOBILE eyeball experience. The HOPE and GAMBLE is that they'll be able to monetize this at some point and become the next Google etc. They SHOULD have big margins if they can get people to pay for the access to eyeballs.
SOMETIMES the stock price is WAY WAY WAY ahead of the actual facts ---- thus anyone that's early is just gambling - which is what a buy of TWITTER (TWTR) is... but I'm okay with gambling a bit (I can afford to) and playing just a bit to see what the outcome is going to be.
I once had 750 "options" on Microsoft in 1986 at a cost basis of $32.25 per share --- at the time - the market was under $30.00 and I used to make fun of that at the time. That GREW just a bit --- as it turned into 216,000 shares at a cost of .11 cents per share... So sometimes a guy can hit a double or a triple or a 10 bagger. And that's what people BET on.
I don't think this is where people should INVEST -- as many of these run up and then blow up. These are gambling money plays and should be viewed as such. I just thought it would be "fun" to post about it here and I'll live or die in front of everyone here. UGH....
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