Messaging service Twitter finally turns a profit

Messaging service Twitter finally turns a profit

Messaging service Twitter finally turns a profit

The difference is that it was Facebook's first such DAU decline, while Twitter U.S. MAUs have long fluctuated within a narrow range between 65 million and 69 million for years. Twitter has also struck deals with media companies for live news and entertainment shows.

For Twitter, all of the recent good news may end up having some unintended negative consequences.

The social network made $91 million (£65m) in the fourth quarter of 2017, up from a $167m loss a year earlier.

"We haven't skipped a beat and we're really excited about looking at this (organization) in a new way but we have a lot of strength around the table and a lot of confidence to continue the strategy", Dorsey said. Pivotal Research cut shares of Twitter from a "hold" rating to a "sell" rating and set a $21.00 price target on the a research note on Thursday. At the time, the move was a natural one, created to bring brands better targeting, efficiency and measurement, as well as offering up an alternative to the Google and Facebook duopoly which accounted for in excess of 60% of the USA digital ad market previous year. On the flip side, the stock is 17.12% away from the 52 week high.

As of 1400 GMT, shares had gained 25.42% in pre-market trading to $33.75 per share.

"The stock's reaction to these results were out of proportion in our view", Weiser said in a research note.

Twitter, Inc offers products and services for users, advertisers, developers and data partners.

Twitter's results were impressive, at least if you grade on a curve. Revenue and adjusted fourth-quarter profit both topped analysts' targets. Revenue from advertising, which makes up the bulk of its revenue, rose 1 percent in the quarter.

Social media giant Twitter posted its first net quarterly profit in history on Thursday, as rising sales of video advertising space across the microblog helped offset concerns over user numbers falling short of expectations on the Street. And in the United States, the number actually declined by more than 1%.

However, Twitter continues to face significant challenges in that turnaround story. Facebook and Google are gobbling up almost all of the growth in online advertising. Twitter, Inc. The company has a 50-day moving average of $16.80 and a 200 day moving average of $16.85.

At least in the eyes of some investors and analysts, the company's best hope is that another company will recognize its underlying value and snap it up. Facebook boasts a whopping 2.2 billion active monthly users while Instagram has approximately 800 million monthly users. It also has an internationally recognized brand and user base.

Just not at its current share price.

An analyst at a small research firm told his clients Twitter shares have gone up way too far. At its current stock price, that gives it a price-to-earning ratio of more than 70. For the full-year the company plans to see capital expenditures between $375 million and $450 million.

It's particularly pricey for a company that still hasn't completely figured out its business model.

Last month, Twitter COO Anthony Noto said he was leaving the company.

The danger for Twitter investors is that potential acquirers will feel the same way.

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