As mentioned above, Twitter released its earnings for the first quarter, and the report proved to be overwhelmingly positive. Here’s what we saw from the report…
- Earnings Per Share – In terms of earnings per share, Twitter had an incredibly positive quarter. While analysts expected that the company would produce earnings in the amount of $0.01 per share, the company actually reported earnings in the amount of $0.11 per share; $0.10 ahead of expectations.
- Revenue – When it comes to revenue, Twitter didn’t leave anyone disappointed. During the quarter, it was expected that the company would generate revenue in the amount of $511.9 million. However, the company blew that figure away, reporting $548 million in revenue for the quarter.
- Active Users – This was the big statistic, and what I believe to be the most important part of the report. In terms of monthly active users, the company saw growth in the amount of 9 million users. This was 7 million more users than analysts expected to see. That represents 14% year over year growth and proved to be just what the company needed to impress investors.
Why This Report Was So Important
While earnings reports are just about always a catalyst, this earnings report proved to be huge for Twitter, but why? The reason is actually relatively simple. The truth is that Twitter has been struggling with user growth for years! In case you weren’t following the stock back then, a couple of years ago year ago, Jack Dorsey took back control of the company as CEO after Dick Costolo stepped down on user growth blues.
With the overwhelmingly positive report that was released today, investors are hopeful that the Twitter user growth blues are over and that the company will be starting a user growth trend in the positive direction. Considering that this is the factor that has held the stock down for years, it was like taking the lid off of a shaken soda bottle for the stock when the report was released.
What Binary Options Traders Should Be Watching For Ahead
Moving forward, binary options traders should be keeping a close eye on Twitter as the company is known to create compelling opportunities. If you plan on taking advantage of these opportunities, all you’ll need to do is keep tabs on the news. With news of positive user growth, it’s going to be important to keep tabs on whether or not the company can continue this growth. So, watch for any user-centric changes, or lack there of, for hints as to where Twitter is headed next.
What Do You Think?
Where do you think Twitter is headed moving forward? Join the discussion in the comments below!
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