Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Twitter share price: 3 key considerations ahead of Q1 earnings

Here are three pivotal points for investors to note ahead of Twitter’s earnings release on 30 April 2020.

Source: Bloomberg

When will Twitter’s Q1 2020 financial results be released?

US social media company Twitter (NYSE: TWTR) is due to release its financial results for the first quarter of 2020 on Thursday 30 April 2020 before the market opens at 08:00 ET. Here are three things for investors to know ahead of the upcoming earnings.

1. Twitter’s earnings fell below analyst estimates for Q3 & Q4

Analysts polled by Factset have given a consensus earnings per share (EPS) estimate of US$0.10 per share alongside expected revenues of US$788.9 million for the microblogging site’s Q1 2020 earnings.

For shareholders, it is probably worth noting that Q1 2019’s reported EPS of US$0.37 per share surpassed analysts’ EPS initial projections of US$0.15 by 141%. Reported revenue at US$787 million was slightly above analysts’ sales consensus projections of US$774.5 billion.

However, for the last two quarters – Q4 and Q3 of 2019 – actualised earnings fell below analyst estimates by 13.76% and 13.64% respectively, so the overall expectation is likely still leaning towards such a possibility.

In terms of share price, Twitter’s share price is down 6.4% year-to-date, with most of the drop having occurred between February and March 2020 during the peak of the coronavirus outbreak.

The 12-month median share price target for Twitter Inc is US$29 per share, based on Factset estimates tallied from 38 analysts. Of these, 10 brokers have rated the stock a ‘buy’, 29 have given it a ‘hold’ rating, while four have rated it a ‘sell’.

According to IG trading data, Twitter’s stock value has recovered over 35% since 03 April and is trading just above US$30 per share.

IG is a world-leading online trading and investments provider for thousands of financial markets. With CFDs, you can buy long or sell short on Twitter shares and other US stocks depending on whether you think prices will rise or fall. Start today by opening an IG account.

2. Twitter withdrew Q1 guidance but hinted of revenue drop

On 23 March 2020, Twitter withdrew its revenue and operating income guidance for the first quarter of 2020, as well as its outlook for expenses, stock-based compensation, headcount, and capital expenditures for the full financial year, citing the growing impact of COVID-19 on the global operating and economic environment, as well as on advertiser demand.

While the near-term financial impact of the pandemic at that stage was rapidly evolving and difficult to measure, the company did however hint that it expects Q1 revenue to drop slightly on a year-on-year basis – with advertising revenue impacted ‘significantly’.

It also expects to incur an unadjusted (GAAP) operating loss, stating that reduced expenses resulting from Covid-19 disruption are unlikely to fully offset the revenue impact of the pandemic in the first quarter.

Twitter’s Chief Financial Officer Ned Segal also noted that prior to the Covid-19 outbreak, Twitter had a ‘strong start to the year’, including a successful Super Bowl season and overall strength in the US.

3. Twitter likely to experience drop in advertising revenue

As more and more companies lower their spending and digital marketing budgets in the face of the coronavirus pandemic, analysts say companies like Facebook, Google and Twitter will see their global ad revenues significantly impacted.

Bernstein analysts wrote in a note earlier this month that ad prices have declined 20% to 40% since the onset of the outbreak, and Twitter has not been spared from this trend. The lack of quality advertisers has also resulted in ‘poor ads which further decrease ad engagement’, the analysts explained.

‘Engagement is all Covid news, and brands don’t want to be associated,’ they added. ‘It’s one thing to advertise alongside the highlights of a game-winning NCAA basketball shot, it’s quite another to appear next to a mortality rate projection.’

Are you bullish or bearish on Twitter Inc? Either way, you can buy long or sell short on Twitter shares and other US stocks using CFDs and other instruments offered on IG's world-leading trading platform. Start today by opening an IG account.

As Chinese internet giants Baidu and Weibo had learned in February – when the virus was at a peak in the country – a drop in advertising earnings in the range of 5% to 13% is to be expected.

US investment bank Cowan & Co in a recent analysis also revised their advertising revenue forecast for Facebook down by US$15.7 billion to US$67.8 billion for the 2020 financial year.

Still, in terms of total monetizable DAU (mDAU), Twitter had stated that quarter-to-date average total mDAU reached approximately 164 million for Q1 2020 thanks to increased conversations around the health crisis, up 23% from 134 million in Q1 2019 and up 8% from 152 million in Q4 of 2019.

How to trade US stocks with IG

Looking to trade Twitter shares and other S&P 500 index stocks? Open a live or demo account with IG and buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter <company name> or <ticket code> in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Get ahead on FANG index opportunity

Get exclusive 24-hour exposure to the best-performing tech stocks at once – with no need to wait for market open.

Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.