More capital to follow Twitter than Kim in 2015….

kim tweet

This writer was struck over the Christmas holidays by how many reasonably app savvy and news hungry individuals don’t use Twitter as their primary news feed. I just assumed they did.

They were genuinely shocked when I stated that Twitter is a must-have for somebody like myself wanting to stay on top of emerging news. Moreover, their impression of Twitter was that it was about self-publishing.

Well, not all of us are as interesting as Kim Kardashian but for news and analysis there are lots of world class curators out there to “follow” and at particular moments in time one can just follow a subject e.g. Charlie Hebdo, Ukraine, Oil Prices etc…

Enough said on the functionality but from an investment perspective we have regularly commented on the media sector’s battle for “live” content which has little value as a lagged “stream” or download. The two obvious content areas are Sport and News. Twitter is effectively a live news content asset. Its current market value is $25 billion while Uber and the latest China hot tech play, Xiaomi, are apparently worth a combined $100 billion……

Now check out Twitter’s tentative performance recovery in this 6 month view of the share price via Bloomberg:

The Twitter share price is negotiating early year volatility rather well, particularly on the down days – that is instructive. Alas, Kim K’s mobile game has dropped to 19th spot in the Apple App store charts and dreams of a $200m windfall are proving wide of the mark….

 

Value

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