“Twitter’s (TWTR) stock is crashing. Management is in upheaval,” Matt Krantz reports for USA TODAY. “But the micro blogging site has one giant thing going for it — $3.5 billion in cash — which buys it lots of time.”
“Shares of Twitter are down 65 cents, or 3.6%, to $17.19 Monday after CEO Jack Dorsey said four top executives were leaving the company,” Krantz reports. “The stock is now down 68% from its highest point over the past 52-weeks and off 55% over the past year. The stock is indicating a serious situation for the company.”
“Investors seem to be preparing for the worst — but the company’s financial standing indicates it has plenty of time to get things right: 412 years to be exact,” Krantz reports. “The company ended its most recently reported quarter with $3.5 billion in cash and investments, says S&P Capital IQ. If the company only burns $8.5 million a year in free cash — as it did the past 12 months — that’s enough cash to last 412 years.”
Read more in the full article here.
MacDailyNews Take: Twitter’s market cap is currently $12.17 billion. If Apple wasn’t so bad at social networking, it might seem like a nice acquisition. As of May 2015, Twitter had more than 330 million active users.
Do you think Apple could take Twitter and help it to not only realize its full potential, but also use it to strengthen the Apple ecosystem and, ultimately, even help sell hardware? Or how about just to keep it out of Google’s or Facebook’s hands?
Jim Cramer: Apple should buy Twitter or Netflix to spur growth – February 7, 2013
Apple won’t buy Twitter, but Google might – April 26, 2012
RUMOR: Apple to buy Twitter for $700 million – May 5, 2009