2020/08/10

Twitter's new subscription-based business can harm it's value

Twitter is starting a new subscription-based business to make short-term profits. This news has boosted Twitter's stock price by 14 percent for a week. (as of Week 2 of July)

Twitter is very financially stable company with 37% of net profit, but it seems to be under pressure from shareholders because of its lack of growth. It's questionable whether this pressure creates real value for the company itself or just to show their growth figures to shareholders in the short term.

Although shareholder-friendly environment in U.S. can certainly be welcome to the investors, we must think this will create harm to the value of Twitter itself.

https://theprint.in/opinion/twitters-planned-subscription-service-could-work-with-these-ideas-experts-suggest/477983/

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