Results below expectations for Twitter

The end of October coincides with the end of the third quarter of 2015, which is an opportunity for economic operators to reveal their latest figures. On the Twitter side, the results are, overall, quite disappointing. This has had an impact on the value of the Twitter share…

Twitter’s revenue and subscribers decline

In recent days, many economic operators have revealed their latest figures. The results are not really to the investors’ liking when it comes to Twitter. The expected turnover and the number of users are indeed showing a certain decline. This is not really reassuring for investors. Moreover, this situation has had an impact on the value of the Twitter share. The day after this revelation, it fell by nearly 12% on Wall Street.

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Forecasts that are not up to the task

For the fourth quarter of 2015, Twitter expects sales to range from $695 million to $710 million. This is below analysts’ estimates. Thomson Reuters I/B/E/S offers an estimate of $739.7 million.
As for the number of active users of the microblogging platform, they were about 320 million per month in the third quarter of 2015. Although this is approximately $4 million higher than in the second quarter, it is still below market expectations. If you want to trade Twitter shares, know that the eToro Forex broker allows you to do so.

A situation that may well surprise

Despite some rather negative forecasts, Twitter nevertheless surprised by finally unveiling quarterly results that were finally better than expected. First, sales increased by a significant 57.6% to just over $569 million. And even if a net loss remains to be deplored, it has decreased. From $175.5 million in 2015, it rose to $131.7 million in 2015, representing about 20 cents for each share compared to 29 cents the previous year. And if we do not take into account the exceptionals, we find a profit of 10 cents for each share, while analysts have estimated a profit of only 5 cents. Especially with the arrival of Jack Dorsey as General Manager, we could expect some positive surprises in the coming weeks and months. To be followed closely…