I am more bemused and slightly saddened by references to things like continuing to chase a dog downwards in order to lower one's "break even point". I've explained at what I'm sure is annoyingly great length why I think this makes no sense, so I won't repeat myself unless someone is really a glutton for punishment.
No, I've appreciated it because it echos my own beliefs. I don't understand MC's strategy at all, but whatever. If I was holding Twitter, and I was up, I'd be locking in those gains not buying more. If I was down, I'd probably run for the hills.
MC - this is a public service announcement, but you should really look into twitter's business more. People who understand the digital advertising business have been telling me for years that twitter's product for advertisers drastically underperforms. One of my VC friends has been giving me a hard time for years over my opinion on their business but finally came around a few weeks ago and admitted I have been right all along.
I won't get into the user product side because while I don't disagree with GF that they have problems, I don't think it's the main reason they are going to continue to lose value. Product management tweaks are not going to fix their core problem which is that they provide a poor product for their customers (eg advertisers). I'm not saying they won't go up and down and that you can't break even, but I haven't seen any reason to believe there is hope for a pop, absent acquisition rumors.
If my words won't do it, let me show you a picture of decline:
Agree completely. These social media companies are two sided markets - consumers and advertisers. They can subsidize one (by making it free as an example) to try to extract revenue from another. Video games are a good example: Sony, Microsoft, etc provide support to game developers so it is easier to make video games on their platform. That drives more games to the platform, which leads to more gamers picking that platform, and then licensing revenue.
Twitter has a lot of users, but the advertisers aren't getting their money's worth - they're not reaching their customers. Facebook has been far more successful at that, I think Twitter focused too much on attracting users because it is a metric to get funding. They needed to be making their platform friendly for advertisers to reach the audience they want.