Friday, April 28, 2017

Troubling Financial Questions


Image result for twitter stock falling
US tech company Twitter is unprofitable.
Twitter has never made a yearly profit, and over the past decade it has actually lost more than 2 billion dollars.

Why is it investors support Twitter stock price.  Currently, Twitter has a market cap of 11.5 billion dollars.
How in the world is that possible?
How can a company that has never made a single penny be worth more than 11 billion dollars?
Twitter is never going to be more popular than it is now.  If it can’t make a profit at the peak of its popularity, when will it ever happen?

Twitter has never turned a profit, and for the first time since going public in 2013, it reported a decline in revenue from the previous year. Its revenue was $548.3 million, down 8 percent.
Net loss was $61.6 million, or 9 cents per share, compared with a loss of $79.7 million, or 12 cents per share, a year earlier.
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Then, we have Netflix most recent earnings report for the period ending March 31, 2017 shows, yet again, negative Free Cash Flow of MINUS $422 million.
Not only is that a record loss, it’s 62% worse than in Q1/2016, and over twice as bad as Q1/2015.
Netflix just keeps losing more and more money. Netflix is losing money at a pace that is exceedingly difficult to imagine, yet investors absolutely love the company.
Currently, Netflix has a market cap of 68.4 billion dollars.
 Here are 14 more Major Tech Companies who are losing billions.

1. Snapchat: At $10 billion, fast-growing Snapchat is one of the world's most valuable private tech startups. Yet the messaging service generates little revenue -- let alone profits -- and it recently sparked privacy concerns.

 
2. Box: The online filing sharing company is poised to go public on Friday after a number of false starts. But Box recently revealed it suffered a $170 million loss in its latest year of results. 
 

3. Zynga: The fact Zynga (ZNGA) is trading roughly 75% below its 2011 IPO price shows just how hard it is to consistently churn out mobile games people actually want to play. 


4. Instagram: Facebook acquired Instagram for $1 billion back in 2012, but analysts say the photo-sharing app is unlikely to be profitable. Yet it could soon be in the black as users continue to flock to the service and advertisers start to latch on too. 


5. Amazon.com: Jeff Bezos has driven Amazon (AMZN, Tech30) investors crazy by investing so heavily in the company (see: drone delivery) that profits are wiped out. Yet it's tough to argue with Amazon's track record given its $138 billion market valuation. 


6. BlackBerry: The company helped invent the smartphone market but it clearly failed to keep up with it. While CEO John Chen has stopped the bleeding, BlackBerry (BBRY, Tech30) remains a shell of its former self. 


7. Pandora: After its shares skyrocketed in 2013, Pandora (P) has come back to earth as the music company grapples with huge content costs. 


8. Weibo: It's known as China's Twitter and just like the U.S. company Weibo (WB) is also unprofitable for now. 


  9. Zillow and 11. Trulia: Both are huge names in the online      
       house-hunting business and both Zillow (Z) and Trulia (TRLA) are unprofitable. Soon they'll also be under the same roof.

 
10. Sprint: The wireless company isn't just stuck in the red, it's wildly unprofitable. Sprint (S) is expected to lose $2 billion in its current fiscal year and another $1.2 billion next year. 


11. Square: Heavy investment in new products have kept Square unprofitable. But that didn't prevent the mobile payments startup from recently landing a $6 billion valuation. 


12. JD.com: The Chinese online retailer is unprofitable but JD.com (JD) is betting heavy investment will translate into profit-making market share gains. 

14. Sony: Easily the oldest company on this list, Sony (SNE) is on track for its sixth loss in seven years due to weak demand for its TVs and cameras. 

Image result for us consumer debt

U.S. consumers are over 12 trillion dollars in debt, and despite the fact that corporate debt has doubled since the last financial crisis, and despite the fact that the federal government is 20 trillion dollars KNOWN US dollars in debt, the US public seem to be convinced that this irrational stock market bubble can keep inflating indefinitely.

 Image result for looming debt crisis


Where is all the money flowing? It seems down a deep hole with no hope of return.   The last time the United States was in a deep depression it took a second World War to recover.  What do we see happening in Washington?  The War Hawks at the behest of the global bankers are pushing for a confrontation with Russia and Syria and by extension Iran.   The entire North Korea puppet show is nothing more then the US keeping the US public occupied with fear.  We could see a false flag used an an impetus to force the United States into another major global conflict. All for the purpose of consolidating global banking power at ANY cost.
 Image result for us national debt breakdown




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