As everyone is well aware by now, Twitter investors and speculators have been on a sharp, sudden and very relentless buying spree, sending the company nearly 50% higher since the first week of December, and nearly doubling it since late November.
Why the stock has exploded the way it has, nobody knows, and frankly nobody cares: it has entered that mythical zone of raging momentum where things work, until they don’t for whatever reason. But in order to present readers with a sense of where TWTR’s $40 billion market cap, which is greater than 403, or 80%, of all S&P 500 companies, puts in in the context of several companies all of which have a market cap that is lower than Twitter’s, we have shown on the chart below Twitter’s 2014 projected Revenue compared to this same universe of immediately smaller S&P500 companies. Again, just for the sake of perspective.
Certainly, we have no doubt that Twitter’s growth curve, based on the realistic assumption of infinite and growing advertising budgets, will promptly eclipse not only the revenues but certainly the earnings and cash flows of all the below-listed companies, and why not all other companies, both in the US and the world, too. Surely, more idiotic things have happened under Bernanke’s centrally planned regime.