Twitter Inc. (TWTR)-Get report After the Weibo website announced better-than-expected third-quarter earnings, the stock fell by its biggest decline in at least five years, but pointed out that its own user growth indicators failed to meet Wall Street’s expectations.
Twitter said that for the three months to the end of September, non-GAAP earnings per share were 19 cents, an increase of 2 cents over the same period last year and 13 cents higher than Wall Street’s consensus. Twitter said that the group’s advertising revenue increased by 15% to $808 million, while total revenue increased by 14% to $936.2 million, both of which exceeded analyst expectations.
Twitter stated that its “monetizable daily active users”
Chief Financial Officer Ned Segal said in an interview with the media: “Looking forward to the fourth quarter, there is still a lot to do, and this is unique in 2020. On the positive side, October looks a lot like September, with events and product launches back.” The conference call is Thursday night. “Moreover, we have benefited from all the hard work that has made Twitter a must-have product for advertisers seeking to release new products and services and connect with what is happening.”
“However, as the U.S. election approaches, it is difficult to predict how advertisers will behave. In the second quarter, many brands slowed down or suspended spending in response to the U.S. civil unrest, but only increased spending relatively quickly thereafter. To catch up,” he added. “Looking forward, the U.S. election period is still uncertain, but we have no reason to believe that the income trend in September will not continue or even improve the election-related window.”
After the release of last night’s earnings, Twitter’s stock price fell 20.75% in Friday night trading, after earning per share of $41.56. The stock’s intraday low was $41.48, which was the biggest one-day drop in at least five years.
“Due to the recent outstanding performance, we feel that caution (entering the earnings report) is necessary, but there are also two negative surprises: the growth rate of mDAU is slower than expected, and MAP 2.0 is postponed until Apple releases more IDFAs (advertisers) (Identifier) guidance”, BMO Capital Markets analyst Daniel Salmon (Daniel Salmon) said that his market performance for the stock is “target” with a target price of $45.
He added: “The growth of mDAU is destined to slow down, so we don’t pay much attention to us, and the continuous improvement of user products has left a deep impression on us.” “But with the stop of the direct response to the roadmap, the bull The case has temporarily stopped. We will stay on the sidelines until we can gain greater visibility.”