Sci-tech

Twitter stalls, fails to add new users this quarter

Twitter stalls, fails to add new users this quarter”

There was an air of positivity in the buildup to Twitter's second quarter earnings today, with the company's share price popping in the wake of its last earnings results in April. Twitter, Inc. has a 1-year low of $14.12 and a 1-year high of $25.25. Better yet, shares have stopped logging lower major lows, and are on the cusp of a new 52-week high.

The market didn't get those compelling results - not on the one front it needed them the most. And as a result, TWTR shares are getting pounded by almost 10% in early trade. Analysts were expecting monthly active users to jump by 1 million to 329 million. The online platform recorded the first revenue decline in its history last quarter but managed to keep investors relatively calm by adding nine million users. In the most recent quarter, the company's revenue fell 5% from the same period a year earlier.

The social networking company reported $0.11 earnings per share (EPS) for the quarter, beating the Thomson Reuters' consensus estimate of ($0.16) by $0.27.

Twitter said average monthly active users in the three months to the end of June was 328 million, the same as in the previous quarter.

Twitter, Inc. (TWTR) stock directed 6.29% toward a higher level throughout a year ago and swapped 7.22% toward a strong spot during past one month. With its user acquisition efforts rates stagnating in the last three months and the advertising revenue still declining, the company's shares are in a free fall, having dropped by ten percentage points immediately after its Q2 2017 report was made public.

In its letter to shareholders, Twitter said that it was able to boost engagement among daily users during Q2 with more push notifications, email alerts, and timeline improvements. (NYSE:TWTR) have been assigned an average recommendation of "Hold" from the forty-eight brokerages that are now covering the company, Marketbeat reports.

The premise is, as long as Twitter site continues to add users, enough bulls are confidence the revenue will materialize, and eventually drive profits. Now, current and would-be TWTR stock holders don't even have that hope to hold onto. Sure, the report wasn't disastrous. (NASDAQ:RCKY) stock price started the day at $13.65 and moved between $13.61 - 15.00 to finally close at $14.40.

Morgan Stanley analyst Brian Nowak is one of those doubters.



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