Skip to content

Twitter Shares Tumble After First Quarter Report

Sam Boughedda trader
Updated 30 Apr 2021

Practice Stock Trading Your capital is at risk
twitter logo

Twitter shares have tumbled on Friday after the company released its first-quarter earnings, with user growth coming in below expectations.

The social media company reported earnings of $68 million, compared to an $8.4 million loss the previous year, or $0.16 per share, above the forecasted $0.14.

Revenue came in at $1.04 billion, an increase of 28% YoY and just above the predicted $1.03 billion.

Looking ahead, Twitter said that it expects revenue between $980 million and $1.08 billion in the second quarter. However, analysts had expected guidance of approximately $1.06 billion.

While the number of monetisable daily users increased by seven million from Q4, the 199 million reported came in below the predicted 200 million.

Twitter's ad revenue rose 32% YoY to %899 million.

“Average monetizable DAU (mDAU) reached 199 million, up 20% year over year and up 7 million sequentially, driven by ongoing product improvements and global conversation around current events,” commented Twitter CEO Jack Dorsey.

Ned Segal, Twitter’s CFO, commented: “Advertisers continue to benefit from updated ad formats, improved measurement, and new brand safety controls, contributing to 32% year-over-year growth in ad revenue in Q1.”

Twitter's shares have fallen over 13% to $56.52 per share following Thursday evenings release.

Should you invest in Twitter shares?

If you’re a smart investor, you will know that having large-cap stocks in your portfolio is vital. They are more mature companies, considered safer investments, trade with less volatility, have greater analyst coverage, and in most cases, have a steady dividend stream. Due to the current market environment, we think now is the perfect time to add large-cap stocks to your portfolio. But which large-cap shares should you buy? Our stock analysts regularly review the market and share their picks for some of the best large-caps to invest in

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.