What to Expect from Twitter’s Q4 Earnings?

What to Expect from Twitter’s Q4 Earnings?

Twitter will be reporting its Q4 earnings before the market opens this Thursday.

The expectation of the analysts for Twitter is an earnings of about 12 cents/share down from 16 cents/share as compared to last year. The revenue expectation is to go up from $710.5 million to $739.97 million. They expect Twitter to be above or at the high end of their guidance this quarter.

Michael Pachter, an analyst of Wedbush Securities, expects 1.5% growth in the US and 0.8% growth internationally. Another analyst Richard Greenfield from BTIG expects a bump due to Trump. Greenfield believes that President Donald Trump could be the reason behind the growth of Twitter. Other analysts disagree.

Twitter’s latest live video streaming strategy seems promising to some analysts and disastrous to some as seen due to the NFL games and presidential debates. According to Record, Kayvon Beykpour, CEO Periscope, is now in charge of their live video initiatives. They still feel that this move might bring new features to its users, but may be too complicated for the average internet user.

Jack Dorsey, the CEO, has no interest in a takeover, but pressure is on him as he has struggled to grow their revenue and users after retaking the responsibility. Now in the mobile era, the social media companies are expected to have fast growth in advertising and audiences. Twitter, on the other hand, has disappointed in that aspect after going public. Compared to Facebook, Twitter has struggled for getting new users.

John Blackledge from Cowen expects a mid-single digit growth in advertising compared to the robust advertising market of digital platforms. For Twitter, delivering profits can be done by cutting costs, according to analysts. Twitter plans to shutter Vine, their video app, and cut down 9% of their workforce. With the human resources and diversity chiefs of Twitter stepping down, analysts are concerned about Twitter management becoming a come-and-go management.

Twitter has been the root of all harassment and abuse on the web and controlling this should be Dorsey’s top priority. It has started to roll out fixes for making it difficult for suspended accounts to be created again.

With stagnated revenue growth and user base for the company, Twitter is now focused on handling complaints, especially after Walt Disney Co. did not pursue to bid for Twitter as they were concerned about bullying on Twitter.

Snap has anticipated its IPO, which brought attention to Twitter’s condition even more. Twitter has its stock down by 7% from its all-time high and their share price is now $18, which is way less than their IPO price. Snap is being bold and pitching to investors as they are the next Facebook and they don’t even want to be compared to Twitter.

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