Twitter co-founder and chief Jack Dorsey on Thursday said that he is giving a third of his shares to company employees.
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Earnings: Analysts surveyed by FactSet expect Twitter to report adjusted earnings per share of 5 cents. The Estimize consensus, a platform of crowdsourced estimates, is 6 cents per share. The Estimize consensus is $561.2 million.
It is important to state that the shares of Twitter have declined by more than 40 percent in the past six months but are showing signs of a bullish reversal since Dorsey took over as CEO. It is imperative to state that Dorsey would still own 15 million shares of Twitter worth about $460 million based on Twitter’s current market value.
The cuts – which amount to 336 jobs – came less than a week after Dorsey, one of the founders of Twitter, returned to the job of CEO on a permanent basis as part of an effort to revive growth at the social network.
While there were no hints that Twitter’s user growth is back on track, outsized growth in the number of people on Twitter would naturally result in better revenue numbers.
We need to make sure we’re serving all of our developers in the best way because that’s what’s going to make Twitter great. He helmed last quarter’s earnings call as interim CEO, and, along with other executives, delivered a downbeat view of the company’s earnings and platform at that time.
Twitter Inc. (TWTR) is a stock that investors either love or hate, and it’s safe to say my perspective is in the latter camp.
Consider that last quarter Facebook hit 1.49 billion monthly active users, up from 1.44 billion in the previous quarter and nearly 1.32 billion a year ago.
Shares of the company are bobbing up and down, to say the least, ahead of its earnings.
Twitter’s potential to help further movements such as #BlackLivesMatter (a cause Dorsey actively promotes) should not be understated.
Instead of addressing the underlying cause of those problems outright and teasing possible improvements that could reverse the troublesome trend, Twitter executives and partners spent the day talking about additional types of user data available that could be released to advertisers and businesses.
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With muted expectations for this and the fourth quarter, Cantor Fitzgerald analysts added that Moments could have a positive incremental impact for engagement starting in the fourth quarter.
