Friday April 30th 2021
Share rushes off
Twitter falls short of market expectations
Twitter presents quarterly figures – and investors are seriously disappointed. In after-hours trading, the share goes down steeply. The network has grown significantly, but analysts had expected even more.
Despite a jump in sales at the start of the year, Twitter is skeptical of the future. The corona-related boom could weaken in the next few quarters and slow user growth, the platform operator announced on Thursday after the US stock market closed. In addition, costs and expenses rose – partly because of new hires.
Skepticism did not go down well on the stock market. The Twitter paper collapsed almost nine percent in the aftermath. Twitter got off to a good start in the year: advertising revenue increased by 32 percent to $ 899 million in the first quarter. That was above the expectations of analysts. Group sales climbed 28 percent to $ 1.04 billion.
Twitter now has 199 million users every day, a fifth more than a year ago. To keep users happy, Twitter is now offering Fleets – short messages that are disappearing and how Snapchat established them – and is also testing an audio app that is similar to Clubhouse. In addition, Twitter wants to offer users new ways to make money on the platform.
The company also repeatedly made acquisitions – most recently it acquired the Revue newsletter platform and the Breaker podcast company. With regard to the latest iPhone operating system from Apple with stricter data protection rules, Twitter, in contrast to Facebook, has so far been cautious. It was too early to know the exact effects, it said. With the update, iPhone users have to agree to the so-called tracking of online activities, which is likely to lead to some also rejecting this, which in turn means less data for personalized advertising.
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