Twitter is suddenly making money and Wall Street likes it a whole lot
Despite flat user numbers and a nominal beat in revenue, Twitter’s fortune-reversal over the past several months is still going as the company said it actually posted a GAAP net income — sending the stock jumping nearly 10%.
Twitter’s overall user numbers were flat, but the company was still able to post a surprising profit and fell above what Wall Street expected for its fourth-quarter earnings. While the company has had to constantly face down issues with the service’s usability and problems that may keep new people from coming on, a lot of attention is now on its ability to try to figure out how to best capitalize on those users, such as by going after live video.
Here’s the slash line:
And, naturally, GAAP profitability and a beat to earnings looks good on Wall Street.
A whole lot happened since Twitter last reported its earnings. The company has been revising up the number of people it says interacted with Twitter accounts linked to propaganda efforts by a Russian government-linked organization. It also lost Anthony Noto, its chief operating officer who did a lot to help Twitter get into video, to SoFi. So, in very Twitter fashion, things are not ever particularly quiet over there.
But the company also ended 2017 on a very strong run, and even ended up with roughly the same market cap as Snap thanks to a sharp decline in their stock. That decline definitely reversed itself yesterday when Snap reported strong earnings, but thanks to a small-ish blessing from Wall Street and doing at least some stuff in 2017, the company was on track to finish up by around 25%.
Here’s the chart:Featured Image: TechCrunch / Matthew Lynley
via Twitter – TechCrunch https://techcrunch.com
February 8, 2018 at 06:11AM