Twitter stock rose over 10% last week
Twitter (TWTR) rose 10% in the week ended December 22, 2017, to close at $24.46. Twitter is now trading 73% above its 52-week low of $14.12 and 4% below its 52-week high of $25.56. Twitter stock has risen by over 50% this year and over 55% since August 2017.
Twitter has consistently beaten revenue and earnings estimates this year, and the stock has risen over 20% since the firm announced 3Q17 results. Although revenue in 3Q17 fell 4.2% YoY (year-over-year) to $590 million, it was higher than the analyst average estimate of $587 million.
Fall in monthly active users
Twitter’s monthly active users (or MAU) fell marginally to 327 million in 3Q17 from 328 million in 3Q16, while daily active users (or DAU) rose 14% YoY (year-over-year) in the quarter ended in September 2017. Twitter doesn’t disclose its DAU metrics publicly. Facebook (FB) and Snap (SNAP) have DAUs of 1.4 billion and 178 million, respectively.
Advertising revenue fell in 3Q17 as well
Twitter has been struggling to grow advertising revenue in 2017, which is negatively impacting overall revenue growth. Although the firm is consistently beating analyst estimates, it needs to look at ways to grow revenue in the long term.
Twitter’s advertising revenue fell 8% YoY (year-over-year) in 3Q17 to $503 million. Advertising revenue fell 8% in 2Q17 as well. In comparison, Facebook, Google (GOOG), Yelp (YELP), and Snap have seen advertising revenue rise by 49%, 21%, 18%, and 59%, respectively, in the last quarter.