Shares in the company, after all, have only plunged to lows seen about two months ago in mid-December. Put another way, shares are double the price of the company's initial public offering just three months ago.
So now seems like a good time to add a bit of context to Twitter's first quarterly earnings report and its wild-ride in public stock markets.
That no long-term shareholders in Twitter since its IPO have lost money in the company seems to me like a minor miracle. In some sense, Twitter's relatively small-sized initial public offering now appears to have been a smart and cautious move by the company, which deserves a bit of praise.
If Twitter's closest comparable is Facebook, then the company is also in the midst of a scandal-free first year on public stock markets that could augur well for investors over the long-term.
Facebook's Sixteen Candles
For those who can't remember past last year, Facebook spent its first sixteen months on the Nasdaq toiling below its IPO offering price of $38 a share, after initial earnings reports cast doubt on the company's ability to engage users on mobile devices and monetize that traffic. Because Facebook had conducted a $16 billion IPO at a valuation of about $100 billion, there were many, many angry investors.
In the wake of weak initial earnings and a drum of criticism from the business press, Facebook CEO Mark Zuckerberg vowed to prioritize mobile user engagement and the company's efforts to generate advertising revenue off of mobile devices. Acquisitions such as the company's deal for Instagram proved helpful in Zuckerberg's efforts, which he conceded hadn't been a priority of the company prior to its IPO, though it's unclear how much revenue Instagram is currently generating.