What If Twitter Stock Were Valued Like Visa?

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.

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3 Ways To Build An Armadillo-Armored Portfolio of Blue-Chip Dividend Stocks

In the entire history of the American capital markets, this fact remains true: there has never been a year in which 10% of the companies that have been raising their dividends annually for more than 25 years went on to fail to raise their dividend in the subsequent year. That is to say, in a century that saw the Great Depression, the 1973-1974 bear market, the 9/11 terrorist attacks, and the 2008-2009 financial crisis, there was never a year in which this statement proved false: “I hold nothing but stocks that have been raising their dividends for 25+ consecutive years, and at least 90% of them raised their dividend this year.”

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