TravisDec 21, 2022

Elon goes on a spaces last night to chat with an intern who is leaving the company (yes really) and says a lot of things, including:

- company was previously tracking to spend 5b
- now has 1.5b in debt servicing
- on track to take in 3b revenues
- negative cash flow of ‘about 3b’
- 1b cash in the bank

Yet he fails to mention that before the acquisition Twitter was in a fairly steady state (cashflows).
1/5

Show threadTrading Places ResearchDec 21, 2022
@coloradotravis TBF, I’m gonna guess that Twitter looked very different in October than it did in that last June Q report
Show threadTravisDec 21, 2022
@TradingPlacesResearch In what way
Show threadTrading Places ResearchDec 21, 2022
@coloradotravis
Just based on other social media - digital ads:
Lower rev
Maybe neg op cash flow or close to it.
Less cash/equiv
Show threadTravisDec 21, 2022

@TradingPlacesResearch honestly their growth, from what I can tell, was pretty good.

Parag was doing a good but boring job. They’d have been fine with some modest cuts.

Show threadTrading Places ResearchDec 21, 2022
@coloradotravis Oh I agree. Just saying it is not a great moment for social media and digital ads, not just Elon setting fire to the platform.
Show threadTravis

@TradingPlacesResearch

Sure, adtech is broadly under pressure as always during a recession.

Yet another reason why this debt is probably terminal.

Dec 21, 2022 at 2:21pmWeb
Show threadTrading Places ResearchDec 21, 2022

@coloradotravis Also, I didn't think debt payments would get to $1.5b a year until the Fed was done hiking.

He should buy the debt at $0.60 and pay himself.

Show threadTravisDec 21, 2022
@TradingPlacesResearch doubt he has the capital
Show threadChaosDec 21, 2022
@coloradotravis @TradingPlacesResearch TSLA margin loan :)