There are all kinds of metrics to measure the performance of a company, but all the best companies eventually make a lot of money. Here’s a closer look at three big-name companies that haven’t quite got the whole “positive income” thing figured out just yet: Twitter (TWTR), Tesla(TSLA) and Yelp (YELP).
Twitter (TWTR)
Early TWTR investors argued that it would just take some time for high-growth social media sites like Facebook (FB), LinkedIn (LNKD) and TWTR to find a way to effectively monetize their huge customer bases. In the meantime, user growth was front and center.
Unfortunately for TWTR investors, FB has managed to maintain its sterling growth numbers via its transition to mobile. TWTR’s user numbers, on the other hand, seem to have peaked in 2015. At the beginning of 2013, Facebook, Twitter and LinkedIn were all struggling to break even in terms of net income, but Facebook’s earnings numbers have steadily and steeply climbed ever since. TWTR and LNKD earnings have floundered.
See the chart a few paragraphs below for an illustration of this trend.
In the past four quarters, FB generated net income of $3.67 billion, while TWTR net income came in at -$521 million and LNKD registered net income of -$166 million.
The market has been very forgiving to Amazon.com (AMZN) and Netflix (NFLX) as they struggle generating profits due to heavy infrastructure expansion costs, but the lack of a clear plan from both TWTR and LNKD have sent investors running for the hills.
Bottom line? Facebook’s making…
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