Twitter shares have risen sharply to over 54% to US$22.88 from all-time lows in March as the company reported stronger earnings and revenue growth of US$590 million in 3rd quarter 2017, beating consensus analysts’ expectations. Can Twitter sustains its popularity as a social platform for the next generation?
The following information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.
Shares in online news and social networking website Twitter have risen over 54% to US$22.88 from all-time lows in March as the company reported stronger earnings, provided higher-than-expected guidance for the 4Q 2017 and grew their audience and engagement.
In their 3Q 2017 report, Twitter announced revenue growth of US$590 million, beating consensus analysts’ expectations of US$586.7 million as well as reporting adjusted earnings per share of US$0.10, also largely beating market expectations of US$0.06. Twitter reported its highest adjusted earnings before interest tax depreciation and amortisation in the 3rd quarter, with total adjusted expenses down 10% year over year. Daily active users (DAU) grew 14% since this time last year.
US President Donald Trump has been a staunch user of Twitter over the years.
Twitter has made progress in three key areas of the business – growing their audience and engagement, a return to revenue growth and achieved record profitability. The social media company has continued to refine its product which has brought back users more frequently to the service.
According to Twitter Founder and CEO, Jack Dorsey:
“It’s our job to help people stay informed about what’s happening in the world and what people are talking about, and we’re focused on making our service faster, easier to use, and more relevant to more people every day.“