Investors in Twitter stock have recently learned the hard way how volatility strikes when you decide to purchase a company that has no readily identifiable profits under its umbrella—in other words, its valuation is inherently speculative because investors are entirely measuring the company based on what it will be like in the future, rather than what it is doing now. After crossing the $74 threshold the day after Christmas in 2013, the price of the stock has fallen to $35.
The financials of the company, as they stand right now, remain unimpressive. Twitter lost $1.13 per share in 2013, and this year should figure to be more of the same. That works out to an annual loss in the $600-$700 million range.