Twitter? ?per share,?? ?giving? ?it? ?a? ?valuation? ?of? ?$10?

Twitter? ?spent? ?$90? ?million? ?on? ?R&D? ?in? ?the? ?third? ?quarter? ?of? ?the? ?year,? ?which? ?is? ?52%
of? ?the? ?company’s? ?total? ?revenue? ?in? ?the? ?same? ?period.? ?In? ?all,? ?the? ?company? ?has? ?spent? ?more
than? ?a? ?quarter? ?billion? ?on? ?R.? ?This? ?was? ?Twitter’s? ?biggest? ?cost,? ?literally? ?50%? ?more? ?than? ?it
spent? ?on? ?marketing;? ?although? ?Twitter? ?isn’t? ?that? ?good? ?when? ?it? ?comes? ?to? ?innovation.
According? ?to? ?Fortune? ?magazine,? ?”?Twitter,? ?which? ??priced? ?its? ?IPO? ?Thursday? ?at? ?$17-$20? ?per
share,?? ?giving? ?it? ?a? ?valuation? ?of? ?$10? ?billion,? ?spends? ?a? ?lot? ?on? ?research? ?and? ?development”.
For? ?instance,? ?Facebook? ?just? ?spent? ?14%? ?of? ?its? ?revenue? ?on? ?R? ?right? ?before? ?it? ?went? ?public
although? ?Facebook? ?is? ?still? ?making? ?money.? ?Another? ?example? ?is? ?Google,? ?they? ?spent? ?up? ?15%
of? ?its? ?revenue? ?on? ?R,? ?but? ?they? ?actually? ?have? ?a? ?good? ?reason? ?for? ?that,? ?high? ?tech? ?lab? ?and
innovative? ?computers.

Twitter? ?does? ?not? ?give? ?details? ?about? ?their? ?R? ?department,? ?so? ?we? ?don’t? ?really
know? ?on? ?what? ?the? ?money? ?is? ?spent? ?within? ?the? ?department,? ?but? ?is? ?it? ?obvious? ?that? ?they
don’t? ?work? ?on? ?any? ?high? ?tech? ?innovation.? ?Actually,? ?if? ?we? ?take? ?a? ?look? ?at? ?their? ?website
twitter.com,? ?we? ?realize? ?that? ?nothing? ?has? ?been? ?changed? ?for? ?years,? ?neither? ?the? ?design? ?nor
the? ?platform.? ?Also,? ?they? ?don’t? ?mention? ?how? ?many? ?employees? ?work? ?in? ?that? ?department,
which? ?makes? ?it? ?even? ?sketchier.? ?Twitter? ?pays? ?their? ?expenses? ?upfront,? ?so? ?their? ?R&D
expenses? ?doesn’t? ?really? ?show? ?on? ?the? ?income? ?statement.? ?”In? ?addition? ?to? ?its? ?regular? ?R&D
expenses,? ?Twitter? ?spent? ?another? ?$87? ?million? ?on? ?capitalized? ?software? ?and? ?other
development? ?costs? ?since? ?the? ?beginning? ?of? ?2011.”? ?(Fortune? ?Magazine).? ?If? ?we? ?remove? ?the
R? ?expenses,? ?twitter? ?would? ?definitely? ?be? ?profitable,? ?but? ?it? ?wouldn’t? ?be? ?easy? ?to? ?pay

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employees? ?then.”I? ?don’t? ?know? ?what? ?they’re? ?doing? ?to? ?innovate,? ?but? ?I? ?think? ?it? ?is? ?early? ?to
criticize? ?them? ?for? ?lack? ?of? ?creativity.”? ?says? ?Michael? ?Pachter,? ?an? ?analyst? ?who? ?follows? ?social
media? ?companies.