“12% ain’t enough. They’re still makibg a huge profit margin.”
The owner is making a lot of dough but Twitter itself is not a very profitable venture.
Check out https://ycharts.com/financials/TWTR/income_statement/quarterly
and look for “Net Income”.
It’s all based on the guess that Twitter is going to keep growing by leaps and bounds. Well, guess what; if that expectation changes the stock price crashes and so will the company. And a rich limousine liberal won’t be anymore important to their bottom line than your average Trump supporter. They need growing numbers of users and that is now in peril.
From advertising revenue based upon page impressions. 75 Million at least are drying up and if the place becomes boring it will be even worse. In order to get impressions they need you to log in and read threads. Take a meh attitude and it costs them a bundle.
Moreover they are in no position to cut costs quickly. Their big expense is servers, power and air conditioning. Those are sunk costs or fixed costs.