Twitter shares plunge after disappointing Q3 profit

By Francis Jay

Social media giant blames advertising bugs and lack of big summer events

Social media giant Twitter’s stock price has fallen by over 18.5 per cent after an underwhelming third quarter revenue and profit report. The company blamed advertising problems, including product bugs, and unusually low demand during the summer

Twitter had forecast that its Q3 revenue growth would lag behind the first two quarters, due in part to its ending some older ad formats. But advertising also encountered unexpected problems, such as bugs, which limited its ability to target adverts and share data with advertising partners. It also said that this summer had fewer big events than last year, leading to a drop in traffic.

However CEO Jack Dorsey tried to mitigate the bad news, saying that product improvements such as proactively removing and identifying abusive content and streamlining navigation increased Twitter’s monetisable daily active usage (mDAU).

Instead of disclosing monthly active users, Twitter reports the mDAU metric, its own creation which measures a user's daily exposure to advertising. These exceeded analyst predictions by 4 million, reaching 145 million according to numbers from financial data provider Refinitiv.

What is your sentiment on TWTR?

40.06
Bullish
or
Bearish
Vote to see community's results!

Twitter’s revenue is up 9 per cent on the same time last year to $824m (£656m), with advertising revenue up 8 per cent year-on-year. Both were well below analyst expectations of $874m and $702m respectively.

The company’s operating expenses far exceeded its revenue growth, rising by 17 per cent on year-on-year to $780m.

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image