Twitter has finally posted a profitable quarter result in more than four years with Net Profit boosting the overall results. The revenue growth of the company has likewise added to the optimistic report of the social media company.
As mentioned, Twitter’s net profit surged in the recent quarter, specifically $91 million in total value. Revenues generated $732 million as well, exceeding the market estimation of $686.1 million. This has consequently boosted the stock performance of the company with at least 20% jump during the release.
Twitter is an online social networking/microblogging service that enables users to send and read "tweets".
Also, the earnings per share of the company recorded a data of 19 cents per share which is 5 cents above the estimated figures. $308 million was also the total value of Twitter’s EBITDA. This has also beaten the market estimates of $241 million by analysts.
The monthly active users of the company also managed to exceed expectations. Twitter had 332.5 during the period compared to the estimations of 330 million. In just a year, the company has been able to gather 68million users in US alone.
According to the company as well, Daily Active Users for the fourth quarter had 12% year over year. This is also a fifth consecutive quarter of double-digit y/y growth.
Regardless of it reaching profitability, Twitter will soon have to run and operate the company without Chief Operating Officer Anthony Noto as he is about to take the reins of online lender SoFi. Noto will leave the company with a history of him helping the company grow further as he was responsible for helping it pursue an IPO while at Goldman. He then consequently joined the company as the COO in 2014.
Shares of Twitter have indeed risen during the release of its earnings report for the fourth quarter. Despite being over bought in the time being, the latest indication presented by the performance of the stock seemed to have fallen by at least 1-64% which was a -0.55 decline generally.
The Coppock curve also signaled that the stock may stay flat in its coming trades. While it is still heavily high on the positive range, a buy would be advised for the social media company.
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