Twitter's Stock Is Going Bonkers This Morning
REUTERS/Alexander Demianchuk
Twitter beat on revenue, EPS, guidance, and most importantly monthly active users.
As a result the stock has been soaring. Right after earnings, it rose as much as 35%. Since then, it's cooled slightly, and now it's up 26% to ~$48.50.
Twitter reported that it has 271 million active users, which was ahead of expectations of 267 million users.
After the company reported earnings, we talked to Twitter CEO Dick Costolo about the bump in users.
He says Twitter is getting new users because it is improving the "onboarding" process for Twitter. When people sign up for Twitter, they're more quickly getting feeds to follow that they like. Those feeds are keeping them engaged with the product.
Everyone is pretty happy with Twitter today, but we would caution some restraint for now. This quarter was great, but it was largely about beating significantly lowered expectations.
If you back up a bit, Twitter's monthly users were up 24% on a year-over-year basis this quarter. Last quarter they were up 25% and the world was writing eulogies for the company. Facebook, which is a comparable product, added 41 million users in Q2 while Twitter only added 16 million.
So, things are good for Twitter, but they're still not great. The company has a lot of work to do.
Costolo knows that, though. On the call, he said, "To be perfectly frank, I think we can be a lot better."
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Experts warn of rising temperatures in Bengaluru as Phase 2 of Lok Sabha elections draws near
- Axis Bank posts net profit of ₹7,129 cr in March quarter
- 7 Best tourist places to visit in Rishikesh in 2024
- From underdog to Bill Gates-sponsored superfood: Have millets finally managed to make a comeback?
- 7 Things to do on your next trip to Rishikesh