Press Releases

Forbes: Twitter Might Be In Worse Shape Than You Think

October 28, 2014

In a new note, the financial health ratings service Rapid Ratings International cites sales performance as one of the main factors in its assessment of Twitter as being at “very high risk.” While Twitter isn’t in any danger of going under over the next 12 months, RRI gives it a financial health score of only 15 out of 100. Compare that with a 26 for LinkedIn and a 70 for Facebook. James Gellert, RRI’s CEO, says a big problem is Twitter is sitting on a lot of cash while giving no clear sign that it can use that war chest to achieve profitability. “What we look at is how well is a company being run, how efficiently is it using its assets to grow its business,” says Gellert. “They’re not yet able to generate the kind of topline growth we’d normally expect to see in a company with the asset size they’ve got… They’ve cashed up, and that cash is now currently an inefficient asset because it’s not assisting them in generating new revenues.”

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