Twitter lost its wings following earnings report Monday and dropped 9.4%, as reported by SeekingAlpha. The second most popular social media company after Facebook reported growth was up 6%, timeline views rising 5% and increase of mobile users. All this sounds pretty good, but management disappointed on its guidance, and that sent the shares falling. Expectations of revenue were in the range of $440M-450M, at the low range of the Street’s expectations of $448M. Even a 9% rise in revenues couldn’t assuage investors, who were disappointed with sales projections for Q4.
CFO Anthony Noto said Twitter’s ad load is less than Facebook’s, but can be increased. Overseas MAU growth was impacted by verifying identities of Asia-Pac users. While some investors are concerned about Twitter’s growth projections, Jim Cramer of Mad Money would use the 9% drop s a buying opportunity, because he believes in the long-term story for Twitter.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
