Twitter already has margins over 60%. Show me some O&G margins.
Calling Twitter unprofitable is (and I hate to use this word) a bit ignorant. Twitter is easily self-sustainable. They are showing losses because they are intentionally spending more than they make on marketing and growth. Because, if the growth potential is there, why not?
Twitter, right now is just like Amazon. I love
Amazon. Literally I use it for just about everything I purchase outside of groceries. If there was a way for me to buy a car through Amazon I probably would.
However, I'm not the only one who feels that way, and thus the company is so overvalued right now it's not even funny. I read something the other day where Amazon would have to increase its revenue something insane like a hundred-fold to validate its stock price. There are alot of people who love Twitter to the same level, thus the insane overvaluing.
The same thing happened back in the day with IBM. They had a great product, but everyone knew it, computers were the wave of the future. You could have bought and hold IBM for next to a decade and never seem much change at all in your investment. The company, however, was strong, growing and turning profits each year, but these were unable to translate into gains for its shareholders due to the insane overvaluation of its stock.
And this is before we even get into the fact that anyone buying an IPO should stop investing immediately as they're only purchasing a speculative option that's always overvalued do to the instantaneous "have to have it now" nature of an IPO.