TWTR Stock In Focus As Twitter Inc (NYSE:TWTR) to Report Earnings

There was a time when TWTR stock used to be one of the notable laggards among tech stocks, but things have changed dramatically in recent years. Twitter Inc (NYSE:TWTR) is expected to release its quarterly results this week, and there is a lot of anticipation about its performance.

Key Metrics to Watch

Back in the middle of March, the company had provided an update and revealed that due to the lockdowns, the social networking platform saw a significant boost in active daily users. That being said, Twitter had also revealed last month that its advertising revenues were affected due to the coronavirus pandemic.

Hence, it is important for investors to figure out the specific numbers that they need to look for in Twitter’s earnings report. One of the key metrics that need to be watched closely is user growth since, at the end of the day, the basis of the company’s business lies in its users.

In its update last month, Twitter revealed that the monetizable daily active users of mDAU and, as of March 23 (starting from the end of the previous quarter), it stood at 164 million. In Q1 2019, the number had been 134 million. Considering the fact that a week was still left in the quarter, the mDAU count could well be higher than 164 million in the end.

On the other hand, revenues growth might not be in lockstep with the rise of inactive users. It is believed that the revenues growth might be flat or, in fact, show a marginal year on year decline. The demand for advertising on the platform has gone down significantly, owing to the coronavirus pandemic.

Many retailers have had to close down their stores, and the entire travel industry has been in doldrums as well. Hence, the significant slice of advertising money has gone out of the window during this period. The results are going to be declared on Thursday, April 30.

TWTR stock closed lower by 4% at $28.79 on Tuesday.

About Travis Garlick 1678 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.