Twitter Stock News: TWTR Jumps 18% on Major Revenue Beat

Twitter stock news

As part of his goal to help RichTV Live members diversify their portfolios, Rich has started profiling bigger and better companies. It started last week with Tesla Inc. (NASDAQ:TSLA) and continues today with a look at Twitter stock news.

When it posted its third-quarter results in October 2019, Twitter Inc. (NYSE:TWTR) suffered a major blow to its share price. Shares dropped 20% overnight and stayed down throughout the end of 2019 and the start of the new year.

Today, the stock completely recovered from that loss off of some major news. This was its best day since 2017, so Rich went live to bring his community members the news.

Twitter Posts First $1 Billion-Revenue-Quarter

In its fourth-quarter report, Twitter posted revenue of US$1.01 billion, up 11% quarter-over-quarter. This beat analysts’ consensus of $996 million and came in at the very top of the company’s own forecast range. As a result, TWTR stock rose 18% by the close of trading.

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“I love social media stocks and I love Twitter. It beat revenue and it’s way up today,” says Rich about today’s breaking Twitter stock news.

The earnings translate to $0.25 per share for investors.

Twitter recorded most of its revenue growth in the United States. Its total US revenue rose 17% to US$591 million, compared with 3% growth in international revenue.

The company remains focused on increasing Monetizable Daily Active Users (MDAU). The report shows that Q4 2019 delivered Twitter’s best quarterly growth for MDAUs, as it gained 21%.

As of December 31, 2019, Twitter reports 152 million MDAUs.

Twitter Stock News: Where Does TWTR Go From Here?

For the first quarter of 2020, Twitter expects to generate between $825 million and $885 million in revenue. This is largely below analyst consensus, which calls for $873 million.

Chief Executive Officer Jack Dorsey said that rolling out new features at a faster pace is a big part of the social media platform’s priorities for the year.

“The time it takes to go from an idea to shipping something remarkable to customers simply takes too long,” he said.

The company also expects its total costs and expenses will increase by 20% this year. This is primarily a result of its plans to build a new data server, which will help the company test new products and release them faster.

“Twitter’s in the green, and I don’t want you to chase this stock, but I think Twitter is a good play,” says Rich.

What do you make of this Twitter stock news? Are you interested in any other social media stocks? Let us know your thoughts!

Featured image: DepositPhotos © cpenler

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