Twitter said in a shareholder letter it had stepped up efforts to reduce spam, automated accounts known as bots and fake accounts. Longer term, the shares had added 58.6% over the last nine months before today's plunge, and hit a two-year high of $48.40 in late November.
Twitter, Inc. (NYSE:TWTR) closed its last session at $26.91. However, the company actually produced earnings in the amount of $0.19 per share, blowing away expectations. "We also launched a new agency resource centre for mid-sized digital agencies, which drove a significant increase in revenue from smaller ad agencies". It reported revenue of $731.6 million, above analyst estimates of $686.4 million.
Advertising drove Twitter's revenues in the fourth quarter. "Overall, 4Q was a breath of fresh air for investors that have patiently awaited for this turnaround story to manifest after years of pain and it looks like the Twitter growth train is back on track". Average MAU totaled 330 million for the quarter, unchanged sequentially and 4 percent higher year-over-year.
In addition, Twitter is showing that it can build on the growth from the third quarter. Analysts have a mean recommendation of 3.10 on this stock (A rating of less than 2 means buy, "hold" within the 3 range, "sell" within the 4 range, and "strong sell" within the 5 range). Over the last quarter, insiders have sold 1,815,670 shares of company stock valued at $33,093,275. "We returned to revenue growth, achieved our goal of GAAP (generally accepted accounting principles) 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", said Dorsey in the earnings call.
One of its other main problems is that user numbers are largely stagnant. In this particular case, the news proved to be overwhelmingly positive. ClearBridge Advisors, LLC is the second biggest holder with 36 million shares now valued at 613.41 million whilst Morgan Stanley Investment Management Inc has 24 million shares valued at 410.83 million.
However, there remain some issues with how Twitter makes its money. Of course, our partners at Trade Ideas were the first to alert us to the gains.
In other Twitter news, Director Evan Clark Williams sold 452,500 shares of Twitter stock in a transaction that occurred on Thursday, June 29th.
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