A story of a mad stock: Twitter

Proprietary trading

I’d like to tell you a story of Twitter stock that took place today. This is a story of either sheer stupidity or I don’t even know what else.

So, a little background. Twitter is a very volatile and highly speculative stock. Why? Because despite all the hype and pray Twitter doesn’t make any money. Literally. It has some small revenue, but it is almost always matched by expenses. It could happen that there were a couple profitable quarters in last 9(!) years that Twitter exists, but all these profits are peanuts compared to a market cap of this company. The company doesn’t even have a price-to-earnings ratio, because by all means it is somewhere close to -?

So what happened today? Today Twitter stock opened just like on any other day. It was $38.09 at the open. It traded a little higher during the day, and the market closed…

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