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Twitter's staff handouts add to 'profit' flattery

A trader on the NYSE floor ahead of the Twitter IPO.
Adam Jeffery | CNBC
A trader on the NYSE floor ahead of the Twitter IPO.

Twitter's efforts to retain talent are sending at least two warnings to investors.

One is that the shares the $11 billion microblogging service has previously given employees are not making them think like owners. The other is that its own preferred way of calculating profit is becoming even more divorced from reality.

Jack Dorsey's company has been giving staffers extra stock and cash to stop them from leaving, the Wall Street Journal reported on March 9.

Twitter's shares have lost nearly two-thirds of their value in the past year, and they now trade around a third below the $26-per-share price set at its initial public offering in November 2013.