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boomshucka | 10 years ago

This is an incredibly stupid analogy. Twitter doesn't give it's users money. Twitter doesn't give it's advertisers money. They run a high gross margin business. Your analogy would be a NEGATIVE gross margin business. Their cost base is too high right now given the revenue, but there is no reason to think they need to grow at the same rate. Many profitable companies at one stage ran at a loss.

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