AroniSmartInvest in Action: Twitter (TWTR) Earns on a Momentum Built since Q4 2018

AroniSmartInvest Sentiment Analysis has flagged Twitter on July 26, 2018

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In October 2018, AroniSmartInvest in Action predicted that Twitter’s stock (NASDAQ: TWTR) will have a momentum in Q4 2018. A momentum that was expected to continue over Q1 2019.  The latest earnings reports confirm the projections, as Twitter continues to address several areas of concerns.  

In Q 4 2018, AroniSmartInvest In Action made the projections after Twitter stock had increased by 86%, reaching $46.80 in July 2018, from $22.04 in January 2018. It was then down 36% over the past three months, back to $28.39. The projections were based on several factors likely to fuel the momentum.  

On April 22, 2019, Twitter  stock closed at $34.39.  At the opening on April 23, 2019 Twitter stock  shot up to $38.95, following strong  earnings reports for Q1 2019. Twitter adjusted earnings of 37 cents per share on revenue of $787 million topped expectations for earnings of 15 cents per share on sales of $775 million. Its monetized daily average users (mDAU), grew 11% year-over-year to 134 million in the first quarter

Twitter:  Security, Mobile,  User Engagement, AI and Cost

Hence, the factors that AroniSmartInvest in Action predicted are in action and appear to be supporting a rewarding momentum.

The 134 million mDAU  included 105 million mDAU internationally and 28 million in the U.S. In the fourth quarter, average mDAU totaled 126 million globally. In a statement to the media and investors, Twitter attributed the increase in mDAU to “organic growth as well as ongoing product improvements and marketing.”

The Q1 2019 earnings will add fuel the momentum, especially given the strong user engagement.  In fact, higher ad impressions and improving clickthrough rates (CTR)  improved  engagement by 23% in the quarter.  The  cost per ad engagement decreased by 4% in the same period. At the same time, Twitter has been cleaning abuse content and removing fake accounts, which further increase engagement and security.

One area of concern is the rising cost.

 Twitter has reported that the total operating cost grew by 18% in Q1 2019 over  Q1 2018. It  expects operating expenses to increase by 20% in 2019, due to an  increase in headcount and merit salaries, and fixed and variabke costs to on-going efforts to improve platforms and implement new initiatives, such as   “existing priorities of health, conversation, revenue product and sales, and platform.”


Disclaimer: AroniSoft LLC  or its associates own Twitter (TWTR) stock. Also read  AroniSmart and AroniSoft LLc  terms here.

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