Twitter Inc (NYSE: TWTR) is having a great day in the trading session today after reporting its earnings. As you can imagine, the report was positive, beating analyst expectations in all respects. With the strong earnings in mind, investors are pushing the stock through the roof in the market today. Below, we’ll talk about:
- The Q3 report;
- what we’re seeing from TWTR stock as a result; and
- what we’ll be watching for ahead.
TWTR Reports Q3 Earnings
As mentioned above, Twitter is having an incredibly strong start to the trading session today after announcing its earnings for the third quarter. Here’s what we saw from the report:
- Earnings Per Share – In terms of earnings per share, TWTR hit the nail on the head. During the third quarter, analysts expected that the company would generate earnings in the amount of $0.14 per share. However, the company actually reported earnings in the amount of $0.21 per share, blowing away expectations.
- Revenue – When it comes to revenue, the company did not disappoint. During the quarter, analysts were expecting that the company would generate revenue in the amount of $701 million. The company actually produce revenue of $758.1 million.
- Monthly Active Users – Finally, the company is seeing strong growth in monthly active users. During the third quarter, monthly active users grew by 9% on a year-over-year basis.
In a statement, Jack Dorsey, CEO at TWTR, had the following to offer:
We’re achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service… We’re doing a better job detecting and removing spammy and suspicious accounts at sign-up.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Twitter, the news proved to be overwhelmingly positive. After all, earnings came in well ahead of analyst expectations and monthly active users are on the rise. So, it’s not surprising to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:10), TWTR is trading at $32.23 per share after a gain of $4.69 per share or 17.03% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TWTR. In particular, we’re interested in following the story surrounding the company’s continued work to keep monthly user growth heading in the right direction as well as continue to generate strong revenue and earnings. Nonetheless, we’ll keep an eye on the news and bring it to you as it breaks!
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