Twitter stock suffers a big drop as the company’s earnings report show at best mixed results, with revenue continuing to decline, amid flat user growth…
Twitter stock isn’t known as a safe investment and reality continues to dog the social platform. During the past few quarters Twitter added to its MAUs or monthly active users. But that came to an end with the latest earnings report.
Twitter Stock Free Falls as User Growth Fails to Impress
When Twitter released its earnings statement, it showed disturbing news — the company did not increase its user base from the previous quarter. The result, an 8 percent drop in Twitter stock. What’s more, the company continues to lose money, with revenue down to $574 million as its advertising wing falters in decline. However, its data licensing is on the rise but not enough to offset losses.
The company states it brought in earnings of 12 cents per share, beating out analysts’ predictions of 5 cents per share. Twitter’s biggest problem is it cannot seem to grow in the market where growth most counts — the United States. The largest majority of its users are outside the U.S. but the company’s largest percentage of advertising revenue comes from inside the United States. Twitter isn’t growing because it’s already likely reached its saturation point here.
Where the social media entity might find success is in its expensive video advertising products. After all, the company boasted an impressive 55 million unique video views but did not provide actual line-items to back that claim. Overall, the company’s stock is up by nearly 20 percent. But, it’s still struggling to prove its monetization prowess.
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