Twitter: Q1 earnings

Summary of Twitter's earnings for its first quarter, following which shares went down 5.28% in after-hours trading (9.40pm).



Earnings per share


$241.5 million -$0.029


$250.5 million -$0.03


Start trading nowlog in or see live chart

Twitter has failed to live up to the hype, and the share price has reacted accordingly.

Twitter may have doubled its quarterly revenue and beaten analyst expectations but, akin to iPhone sales for Apple, user growth is the key tenet for the social media company. Growth of a mere 25% to 255 million, lower than the 30% growth achieved the previous quarter, tends not to inspire those investors looking for a profitable company with big potential.

While ad revenue appears to be on the up, and potential to expand internationally is an option, social media is becoming a competitive space. It’s perhaps clear now that the share price was exceptionally toppy since the IPO date and shareholders reminiscent of the demise of MySpace will be conscious of how a popular trend can quickly lose its appeal.  

As the chart below shows, we are now below the lows seen in late November. The descending channel remains in place, although over-enthusiastic bears should be cautious before piling in. The shares slumped 10% yesterday, taking us to the bottom of the channel, but on the previous two occasions this occurred (in February and April, points A and B) there was a sharp rally. The outlook for the shares is quite negative however, so once a post-results bounce is out of the way I expect the shares to head in the direction of $35. 

Twitter chart

Here is a  full list of US stocks that can be traded outside New York Stock Exchange trading hours of 2.30pm to 9pm (London time).

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.