The news just keeps getting worse for Twitter Inc TWTR 0.14% shareholders after the battered stock crashed another 15 percent on disappointing Q1 earnings. Twitter’s numbers were actually atypical this quarter, with the company reporting better-than-expected monthly active user (MAU) numbers and disappointing revenue.
However, according to Pacific Crest analyst Evan Wilson, Twitter management’s commentary on the weak environment for tech ad spending could be most troubling. Twitter seems to be echoing similar macro concerns to the ones that Yahoo! Inc. YHOO 0.03% expressed in its post-earnings commentary.
“This very well may be the weak performers in the space pointing fingers, but we were watching for the potential impact on the end of VC welfare on ad spending,” Wilson explained.
Twitter reports that ad engagements climbed 208 percent year-over-year (Y/Y) in Q1 and that cost per engagement was down 56 percent.
Twitter failed to deliver any significant improvement in its slumping user growth in Q1.
Pacific Crest has lowered its 2016 revenue and EBITDA estimates from $2.97 billion/$796 million to $2.66 billion/$689 million.
The firm maintains…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
