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The venture capital firm Dragon fire LLC has hired you. Your first job is to perform a quick but in-depth financial analysis of Twitter inc.

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The venture capital firm Dragon fire LLC has hired you. Your first job is to perform a quick but in-depth financial analysis of Twitter inc. You are provided the 10-k that Twitter reported on February 29, 2016. Estimate the following: In the fourth quarter of 2015, Twitter had 305 million active users. Assuming the same number of active users in each of the quarters of 2015, what is the revenue per active user? Assume that cost of revenue is the only variable cost in Twitter's income statement. All the other items are fixed costs. Although not shown explicitly in the income statement, depreciation in thousands during 2015 was $312, 823. In the Income statement, depreciation is accounted as part of cost of revenue. Perform a survival break event analysis What is the level of Earnings before Depreciation, Amortization, and Taxes (EBDAT) in 2015 What is the level of sales that makes EBDAT equal to 0? Assuming that revenue per active user remains constant during 2016, what is the number of active users that Twitter needs to If BOAT) break even at the end of 2016? What is the expected growth in the number of active users? In early February, Twitter reported that the number of active users at the end of 2016 was 319 million. How do you think was the price reaction was that day

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