You&#x27;re spot on about Twitter basically being far overvalued. However their problem isn&#x27;t lack of real revenue. They&#x27;re tracking to $2+ billion in revenue in the next four quarters. Assuming a significantly slowing growth rate, they can <i>easily</i> double that sales trajectory to $4 billion in three years.<p>Their problem is that costs are far out of line, which is why they&#x27;re cutting. Twitter could turn a significant profit if they design for $3 or $4 billion in sales (rather than pretending they&#x27;re heading toward $20 billion). Their margins should be comparable to Facebook&#x27;s, their business is no more difficult to optimize.<p>They have 12% of the sales of Facebook, with ~38% of the employee base. It&#x27;s an extremely poorly run, bloated business. They&#x27;re built to scale to Facebook&#x27;s size, but they will never achieve that size no matter what happens. Long-term they&#x27;re a $20 or $40 billion market cap business, instead of $250 billion.