[swingbridge]

Twitter is just a sign of what's to come for a lot of new tech companies. The street wants profit. Once you go public the whole cool startup party ends (unless you can be a cool startup AND hit your profit numbers).

It's time to be a real business or pay the price of being an overvalued pile of stinking financial junk.

[PublicEnemy111]

The downward pressure came from Twitter missing revenue expectations, not profit.

[swingbridge]

Yes, but the street cares about revenue because they care about profit. If you have high costs you can always just say you had a bad quarter but profit will come when costs come down.

Even if Twitter fired half its people and cut costs like crazy they'd still struggle to justify their current valuation. The street is angry at the reveune numbers since on this current trajectory there's not really a clear path for how the company can generate enough profit to justify its valuation... unless their revenue skyrockets, which is looking less and less likely evey quarter.