Twitter (TWTR) Stock: Flying On Strong Earnings!

Twitter Inc (NYSE: TWTR) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company reported its earnings for the fourth quarter, blowing away expectations and announcing strong growth in monthly active users. Of course, the strong earnings led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about what we saw from earnings, what we’re seeing from the stock, and what we’ll be watching for with regard to TWTR ahead.

TWTR Gains On Strong Earnings

As mentioned above, Twitter is having an overwhelmingly strong day in the market today, and for good reason. The company reported its financial results for the fourth quarter, blowing away revenue and earnings. On top of financial data, the company showed some pretty impressive growth in terms of users. Here’s what we saw from the report:

Earnings – In terms of earnings per share, TWTR definitely did not disappoint. During the fourth quarter analysts expected that the company would generate earnings in the amount of $0.14 per share. However, the company actually produced earnings in the amount of $0.19 per share, blowing away expectations.

Revenue – Revenue also proved to be overwhelmingly strong. During the fourth quarter, analysts expected that TWTR would generate revenue in the amount of $686.06 million. However, the company actually reported revenue in the amount of $731.6 million.

MAUs – Finally, Monthly Active Users, or MAUs, proved to be yet another big hit for the company. During the quarter, the company grew 4% to 330 million monthly active users. However, these numbers were hit hard by a change in Apple Safari browsers as well as Twitter’s goal of reducing maliciously active users. So, 4% considering these hurdles was overwhelmingly strong.

Guidance – Finally, the company said that it expects to be profitable on a non-GAAP basis by the end of the year. First quarter earnings are expected to come in between $185 million and $205 million with margins between 33% and 34%. In a statement, Jack Dorsey, CEO at TWTR, had the following to offer:

Q4 was a strong finish to the year… We returned to revenue growth, achieved our goal of GAAP profitability, increased our shipping cadence, and reached five consecutive quarters of double digit DAU growth. I’m proud of the steady progress we made in 2017, and confident in our path ahead.

What We’re Seeing From The Stock

One of the first things that we learn as investors is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. With strong earnings in mind and expected profitability coming soon, investors are excited about Twitter. So, it’s no surprise to see that the stock is making a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:08), TWTR is trading at $32.50 per share after a gain of $5.59 per share or 20.77% thus far this morning.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to follow TWTR. In particular, we’re interested in following the company’s continued and robust growth and excited to see the company finally reach profitability. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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