Twitter Surprises Wall Street With Modest Growth, Lays Off 9% Of Workforce
Twitter is struggling to keep the interest of Wall Street as a standalone company, but its solid third quarter earnings may stem a downward spiral as investors flee the stock on fears its growth has petered out.
On Thursday morning, Twitter delivered slightly better than expected third quarter earnings, which included an 8% rise in revenues to $616 million and a 3% rise in average monthly users to 317 million. Daily active users rose 7%, indicating, an acceleration in activity from the second quarter. These results beat analyst estimates of $605 million in revenues and flat growth in MAUs, causing Twitter shares to rise nearly 5% in pre-market trading, but those gains mostly faded by the afternoon.
“Our strategy is directly driving growth in audience and engagement, with an acceleration in year-over-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter,” Jack Dorsey, Twitter’s co-founder and CEO said in a statement.
For Twitter, third quarter earnings may stem the tide of a 25% plunge in its stock this year as user growth slowed to a crawl and the company was unable to attract takeover bids from Disney and Salesforce.com after reportedly launching a sale process this fall.
Source: Twitter Surprises Wall Street With Modest Growth, Lays Off 9% Of Workforce & https://www.youtube.com/watch?v=Xh6dMGAKcy8