Twitter has struggled in recent years with user growth and product focus. Hedge funds and other institutional investors own 50.12% of the company's stock. Despite Twitter keeping its figure steady, it's not comfortable knowing that it's not experiencing growth. However, Twitter continues to face stiff competition from peer social networks like Facebook and Instagram when it comes to attracting ad dollars. The good news on the bad news?
The social platform's revenues for the fourth quarter of 2017 grew 2% year-on-year to $732m. Vetr raised shares of Twitter from a hold rating to a buy rating and set a $22.96 price target for the company in a research report on Monday, October 30th. Adjusted earnings were 19 cents, above analysts' expectations of 14 cents. The company's shares are rising more than 17 percent in pre-market activity.
Several challenges impact Twitter's popularity.
Twitter spent the second half of 2017 explaining how Russian accounts and bots used its service to influence the 2016 U.S. presidential election.
"It shows that Twitter has staying power", Grygiel said. The firm offers various services and products, including Twitter that allows users to create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. The company has enacted a slew of new policies around abuse, but enforcing them will be a bigger hurdle.
There are millions of fake accounts tweeting, retweeting and liking numerous most high-profile accounts on Twitter.
The profitability is an important achievement for Twitter, which has lost money consistently since its public offering, sparking speculation on whether it needed to sell itself to keep operating.
Then there's the issue of automated accounts made to look like real people.
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And for a Netflix-like experience , they will get a library of ESPN Films, including the 30 for 30 series of documentary films. The network is attached to a large number of basic cable packages, and when people drop cable its numbers dip.
As for the outlook, Twitter said it expected adjusted EBITDA of $185 million and $205 million. Twitter began purging millions of fake accounts in response. It had 68 million users in the country in the fourth quarter, down from 69 million in the prior quarter. But the Times referenced a report saying it could be as high as 15 percent. While for the Next 5 years, the company could expect a growth of 38.5% per annum, whereas in the past Five years Twitter, Inc.
There remains one clear sore spot at Twitter, though: monthly users.
"It really is the fastest newswire service we've ever seen", she said.
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Questions remain over how Twitter will replace Anthony Noto, its outgoing chief operating officer.
"Now (that) he's gone, who's running the company?" said Wedbush analyst Michael Pachter.
Twitter's Q4 results reveal the company is finally starting to make some headway on a turnaround strategy that has been in place since co-founder Jack Dorsey returned as CEO in 2015. An analyst cited by Bloomberg says that the company is also seeing increased engagement time.
Twitter declined to comment.