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Twitter Surged in Premarket Trading on Q1 Results

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Twitter stock rose on first-quarter numbers

Twitter (TWTR) stock rose ~7% in premarket trading on April 23 after the social media giant reported upbeat results for the first quarter of 2019. Twitter stock fell 0.03% to $34.39 on April 22. As of the same day, it had risen 19.7% YTD (year-to-date).

Facebook (FB), Amazon (AMZN), and Alphabet (GOOGL) had risen 38.4%, 25.7%, and 20.0%, respectively, in the same period. Snap (SNAP) had risen 109.3% YTD.

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Twitter’s first-quarter earnings and revenue

Twitter managed to surpass Wall Street’s expectations on both the earnings and revenue fronts in the first quarter. While Twitter’s adjusted EPS of $0.37 exceeded analysts’ estimate of $0.15, its EPS rose more than 130% YoY (year-over-year) from the previous year’s $0.16. Despite YoY growth in costs and expenses in the quarter, the company’s adjusted earnings increased significantly on the back of higher top line growth and growth in its monthly user base.

Twitter’s revenue of $787 million exceeded the consensus estimate of $776.1 million by 1.4%. It also rose ~18% from the previous year’s period. The company’s top line growth was boosted by advertising, increases in domestic and international revenues, and data, licensing, and other revenues.

Twitter’s monthly active users of 330 million also exceeded analysts’ estimate of 318 million in the first quarter but fell behind last year’s first-quarter figure of 336 million.

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