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Twitter Q1 earnings soar
Twitter reports a strong performance in the first quarter of the year with large increases in share earnings and a rising number of users. Twitter has announced that it will be changing its metric from users to monetisable daily active users.
Tue, 23 Apr 2019 15:00:55 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Twitter reports a strong performance in Q1 with a significant increase in monetizable daily active users, showcasing an 11% growth from the previous quarter.
- The shift from monthly active users to monetizable daily active users reflects a strategic move to highlight profitability and sustainability for investors.
- Investment analysts emphasize the importance of product innovation in the news space to differentiate Twitter and maintain its competitive edge in the market.
Twitter has reported a strong performance in the first quarter of the year, showcasing significant increases in share earnings and a rising number of users. The social media platform has announced a strategic shift from users to monetizable daily active users, signaling a new metric to measure its success.
The move from monthly active users to monetizable daily active users is seen as a pivotal step for Twitter to demonstrate growth and profitability to investors. The company has successfully increased its daily active users from 126 million to 134 million, showcasing an impressive 11% growth. Analysts view this as a positive development for Twitter, signaling a promising quarter.
In a recent CNBC Africa interview, industry experts discussed the implications of Twitter's shift in metrics and its impact on the company's outlook. Alex, a financial analyst, noted that Twitter's focus on monetizable daily active users is a strategic move to differentiate itself from competitors like Snapchat. By emphasizing the ability to generate revenue from each user, Twitter aims to showcase its profitability and sustainability.
The interview also touched upon the market response to Twitter's performance, with the stock price rising by 7.2% following the earnings report. While the uptick in stock value indicates some investor confidence, Aaron emphasized the volatile nature of Twitter's stock and the need for consistent growth and momentum. As a growth stock trading at 40 times earnings, Twitter faces pressure to deliver significant results to maintain investor interest.
Looking ahead, the interview explored the importance of innovation for Twitter's future success. Alex highlighted the need for product innovation in the news space, suggesting that Twitter should focus on enhancing its news platform to capitalize on its strengths in real-time information dissemination. By creating a more compelling news experience, Twitter can differentiate itself from competitors and attract a broader audience.
The discussion also touched upon the competitive landscape, with Apple News emerging as a potential threat to Twitter's news dominance. As tech giants enter the news market, Twitter must continue to innovate and evolve to stay ahead of the competition. While the platform has seen growth both in the U.S. and internationally, maintaining engagement and user trust remains a top priority.
Overall, Twitter's strategic shift to monetizable daily active users signals a new chapter for the social media platform. By focusing on profitability and user engagement, Twitter aims to position itself for sustained growth and market relevance. The company's ability to innovate in the news space and adapt to evolving user demands will be crucial in shaping its future trajectory.
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