This week is a big week for social media stocks. It all starts today, and we will be getting earnings release from Twitter (TWTR) after the bell today. Twitter kicks off the week for social media earnings today, followed by Facebook tomorrow.
(Picture: Twitter chart)
Twitter haven`t met analysts expectations on MAU`s (monthly active users) growth lately. With 271 million MAU`s they are focusing on product improvements to increase the amount of time users spend on their platform.
They launched their brand new Audio Cards this quarter which enables music and podcasts to be played directly on Twitter via Soundcloud.
The company has underperformed the Nasdaq and Facebook (FB), as analysts is disappointed at Twitters growth prospects and engagement levels. So far, they have posted strong sales growth but with disappointing earnings.
Analysts expect strong results from the social media giant after the bell today, and this brings up the big question; Is this a good time to invest in the tweeting giant?
It is expected to se a report revenue of $360 million, and if that is the fact, it will represent about 100% increase in sales vs same time last year.
It`s not easy to value early stage growth companies like Twitter, but investors will focus on earnings and revenue after the bell today. Some people are negative and expect EPS of $-0,27. Other say $0,01.
Last quarter, the stock gained 22% because revenue was $312 million compared to analysts estimate of $282 million. Some say the surge in performance last time was attributed to increased engagement and user activity because of the FIFA World Cup, and analysts belive that Twitter will not be able to follow with a similar performance.
Analysts I have talked to are forecasting earnings of 3 cents per share. Twitter has a great track record of beating the Street`s EPS consensus. Will they beat Wall Street this time?
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