Why Twitter needs to drive user growth and engagement
Twitter (TWTR) is expected to announce its 2Q16 results on July 26, 2016. The company is guiding for a revenue range of $590 million-$610 million, which translates to growth of 17%–21% YoY (year-over-year).
Twitter’s revenue growth is falling, as you can see in the chart below. With the current guidance, the company’s top-line growth rate is expected to decelerate.
Twitter’s core product issues and stagnating user base growth, especially in the United States (SPY), are impacting the company’s advertising revenues. Advertising remains the major source of revenue for the company. However, Twitter is lagging behind fast-growing rivals like Google (GOOG) and Facebook (FB). Google and Facebook remain the dominant players in the digital ad space by net revenues, followed by Baidu (BIDU) and Alibaba (BABA), according to eMarketer.
What impacts brand spending on Twitter’s platform?
Twitter made several product improvements last year, but its user growth showed no signs of improvement, and the company’s user engagement declined. It’s important for the company to drive user growth and engagement in order to attract brand marketers.
During the last reported quarter, Twitter’s revenues from advertisements grew 37% YoY. However, the company noted that the brand spending on its platform didn’t grow as quickly as it expected.
This is cause for concern, as the company earns most of its revenues from advertising, and lower ad spending on its platform would only amplify its problems.
Twitter (TWTR) is expected to announce its 2Q16 results on July 26, 2016. The company is guiding for a revenue range of $590 million-$610 million, which translates to growth of 17%–21% YoY (year-over-year). Twitter’s revenue growth is falling, as you can see in the chart below. With the current guidance, the company’s top-line growth rate […]
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.