Twitter ad sales increase in the third quarter, shares jump

Twitter ad sales increase in the third quarter, shares jump https://www.eresviral.com/wp-content/uploads/2018/10/Las-ventas-de-anuncios-de-Twitter-aumentan-en-el-tercer-trimestre-las-acciones-saltan

Twitter ad sales increase in the third quarter, shares jump







NEW YORK (Reuters) - Twitter Inc reported earnings and earnings ahead of Wall Street estimates on Thursday, as higher advertising sales offset a drop in monthly users to boost the company's shares by almost 12 percent before the opening. 











People with mobile phones are clipped onto a projected background with the Twitter logo in this illustration taken in Warsaw on September 27, 2013. REUTERS / Kacper Pempel / Illustration / File Photo    





Quarterly advertising revenue increased 29 percent from the previous year to $ 650 million, driven by the interest of advertisers in the broadcasts of media companies such as Live Nation Entertainment, Major League Baseball and Major League Soccer. 

That caused a similar increase in the general revenues with respect to the previous year to $ 758 million, surpassing an average estimate of analysts of $ 702.6 million, according to Refinitiv data. The company reported adjusted earnings of 21 cents per share, well above an average forecast of 14 cents.  

However, Twitter posted a larger-than-expected fall in monthly active users in the third quarter, its second consecutive quarterly decline, and predicted that the number would fall again in the fourth quarter. 

He blamed user declines for efforts to clean up the site of suspicious users, including accounts used in politically influential operations, as well as his response to the new privacy regulations in the European Union.  

Monthly active users fell to 326 million in the third quarter, below analysts' average forecast of 331.5 million, according to FactSet. Twitter said it expects to fall below 326 million in the current quarter, losing the average forecast of 333.4 million.  

Twitter is fighting for its reputation by cutting and blocking fake users, but the cost of traffic is undermining faith in its ability to grow. Recent business progress has focused on getting current users to click on more ads, which has helped Twitter make a profit.   









An illustration of the illustration shows the Twitter logo reflected in the eye of a woman in Berlin, November 7, 2013. REUTERS / Fabrizio Bensch / Illustration / Stock Photo



Analysts have warned that Twitter should contain decreases in user growth in order to better compete for advertising spending with rivals such as Google Alphabet Inc. and Facebook Inc. Investors pay close attention to users' monthly data because they they consider a key indicator of future income. , most of which comes from ad sales.  

The use of Twitter has been stagnant for more than a year, causing analysts to worry that growth has peaked. 

Those concerns have been offset by increases in video ad sales, suggesting that the company is succeeding in efforts to generate more cash for each user. 

Investors seek to understand the financial impact of Twitter movements to clean up their platform by eliminating the accounts used for fraud, hate speech and electoral interference. 

Twitter has eliminated millions of suspicious accounts this year, including those belonging to Alex Jones and his Infowars conspiracy site. 

"We are doing a better job of detecting and eliminating spam and suspicious accounts at the time of registration," Chief Executive Jack Dorsey said in a statement. 

Twitter said the number of daily active users increased by 9 percent year on year, weaker than an 11 percent jump in the previous quarter and its slowest growth rate in two years. The company does not disclose the total number of daily users. 

Twitter shares fell 19 percent when the company reported quarterly results on July 27. Its shares have fallen 36 percent since that earnings report, compared with a 6.4 percent decline in the S & P 500 index. 

Of the 40 analysts surveyed by FactSet, 10 have a purchase rating in the stock, while 24 have a retention rating. Six have a sales rating. The average target price is $ 32.91, approximately 16 percent more than the Tuesday close of $ 27.54. 





Report of Angela Moon and Munsif Vengattil; Edited by Jim Finkle and Patrick Graham





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