Twitter is Undervalued…The Elon Musk Edition

In the spirit of NFL season, let me armchair quarterback about Twitter.

Imagine a world where Twitter delayed each and every tweet (30 seconds).

Would it matter?

Who would care?

If you use Twitter for politics, to yell at people or read entertainment tweets it would not matter.

If you use Twitter in a capacity anywhere related to what I call ‘invest trade or gamble (sports)‘, it sure as hell would matter and I would argue the right people (those that would pay the most to Twitter) would care.

Elon Musk proved this once again last week. In just one tweet , Elon halted his stock and created a $3 billion price change:

It is another perfect example of how Twitter has failed to adequately monetize Wall Street and sports wagering.

Bloomberg is a $9 billion revenue company and the bulk of the revenue comes from 300,000 customers paying $24,000 per year.

Twitter has 335 million monthly active users and from my reading of the financials gets 85 percent of it’s revenue from advertising.

I believe Twitter could delay EVERY tweet 30 seconds starting tomorrow and their advertising revenue would not drop. I think number of tweets would actually increase. For example… ‘Hey…why are my tweets delayed’ would probably trend for days and days.

I am very confident that 1 percent (3 million) of Twitter’s monthly active users invest, trade and gamble enough and would pay $1,000 per year to receive Twitter in real time with a live customer support desk. That is $3 billion in recurring revenues in year one.

In the meantime, CEO Jack is on a press tour talking about Alex Jones and the board is on Facebook and Instagram sharing photos of their families.

In 2018 truth may not be truth, but real time is money.

Armchair quarterbacking done.

Disclosure – Long Twitter


Also published on Medium.