Twitter (TWTR) Stock: Spiking Upward On Earnings/Layoffs/Product Discontinuation

Twitter Inc (NYSE: TWTR)

Twitter is having a strong day in the market today. In the beginning of the day, it started off on highs, fell near the red line, and now, it’s spiking again. Today, we’ll talk about what we’re seeing from the stock now, why, and what to expect from TWTR ahead.

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What We’re Seeing From TWTR

As mentioned above, Twitter started the day off strong on earnings. However, throughout morning trading, the stock fell to the red line. Nonetheless, minutes ago, we started to see big gains again. The gains are likely attributed to news surrounding the Vine Mobile App, but we’ll get to that later. Currently (12:18), TWTR is trading at $17.51 per share after a gain of $0.22 per share (1.27%) thus far today.

Why We’re Seeing The Gains In The Stock

In early morning hours, TWTR released its earnings report, beating expectations in a big way with regard to both earnings and revenue. This led to the early morning pop. However, with the idea that user growth is still incredibly modest, we watched as the gains fell off throughout the morning. Nonetheless, the stock is headed up again.

The spike that happened minutes ago happened as Twitter made a big announcement with regard to the Vine Mobile App. The company said that it would be discontinuing the service. This comes after the company announced layoffs of about 9% of its workforce along with earnings. So, the restructuring plans are starting to come together and investors seem to like what they see.

What We Can Expect Ahead

While the future is starting to brighten up a bit for TWTR, there are still tons of unanswered questions. Revenue and earnings were strong, that’s great, but the company needs to get user growth in order. To their credit, user growth is starting to see an upward trend. However, at this rate, it would take years to appease investors. So, while TWTR seems to be heading in the right direction, there are still quite a few hurdles in the way.

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[Image Courtesy of Pixabay]

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