Business Overview and Segments
This is the company that owns the very-established social media platform – Twitter. The business is pretty simple – they earn money from selling ads on their platform, and most of their expenses are from the costs of running the platform. So its important to remember here that although it’s labelled a social media company, its actually an advertising business – so the more people on the platform, the more advertising dollars that come their way.
Network Effects – the more people who user Twitter, the more people that will be attracted to Twitter to socialise with their favourite people, which will lead to more people using Twitter.
Key Facts and Figures
| Risk of Bankruptcy | Low |
| Last Year’s Growth | 14% (Moderate) |
| ROIC (Company Quality) | 6% (Moderate) |
| Free Cash Flow Margin (Company Strength) | 12% (Moderate) |