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Put simply, future value. Otherwise a sidewalk lemonade stand profiting 1 cent per glass would be far more valuable than a lemonade manufacturing business which sells millions of bottles a day and pumps all the profits plus additional investment money into manufacturing facilities. At some point, the money-losing lemonade manufacturer no longer needs to ramp up their facilities, they pay down the equipment cost, and generate boatloads of profit. That or they get bought out by a larger player who wants to enter the lemonade market but doesn't want to reinvent the wheel.


Of course, but at some point the whole "future value" logic runs flat. The market is losing faith in TWTTR's ability to generate value.




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