Twitter Q4 results: shares down 10% after earnings revenue beats estimates
|Earnings per share (EPS)||$0.31|
|Net income||$255 million|
|Monthy active users (MAUs)||321 million|
Twitter Q4 earnings exceeded the expectations of financial experts.Twitter Q4 revenue was $909 million, exceeding the $868.1 million projected by Wall Street. The social media company’s earnings per share was $0.31, surpassing the estimate of $0.25. While many figures increased, not all of Twitter’s numbers grew. The app’s monthly active users plateaued at 321 million and the number is down from 330 million users in 2018.
Twitter has blamed the lack of growth in MAUs on the General Data Protection Regulation(GDPR) that protects users’ personal data.
The social media company also noted that the MAU’s declined because of a crackdown on ‘bots’, or fake Twitter accounts.
Chief executive officer, (CEO), Jack Dorsey, noted the success of Twitter’s Q4 revenue.
‘Our efforts to improve health have delivered important results, and new product features like a single switch to move between latest and most relevant tweets have been embraced by the people who use Twitter. We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service,’ wrote Dorsey in a statement.
What do Twitter’s Q4 results mean for their share price?
Twitter’s Q4 results have been positive, but could ironically be negative for its share price. Twitter’s share price is currently $30.80 and could fall further after news about a stagnation in MAU’S and a report that the company will have a new metric to measure monetizable daily active users.
How do Twitter’s Q4 results compare to other tech stocks?
Facebook and Snapchat have had positive earnings results, similar to Twitter’s better-than-expected Q4 revenue report. Though their shares jumped after their earnings reports, Twitter’s stock has gone in the opposite direction and has fallen.
What is Twitter’s dividend forecast?
For Q1, Twitter projects total revenue to be between $715 million-$775 million, close to the $762 million expected from Wall Street. The social media company projected operating income from $5 million-$35 million. In addition, the company said it predicts full-year 2019 operating expenses to be up 20% this year, with capital expenditures expected to be between $550 million and $600 million, far beyond estimates of $415 million. Twitter explained the increased expenses are to combat the spread of false information and to increase security on the app.
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.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets