As the earnings season continues, on Thursday, Twitter (TWTR) released a report that really got investors excited. Today, we’ll take a close look at the report and talk about the good news, the bad news, a confirmation that Twitter and Google will be teaming up once again, and discuss their stock price following the report. So, let’s get right to it.
Twitter’s Q4 Good News
When it comes to earnings, it was all good news at Twitter Thursday after hours. In the fourth quarter, Twitter generated total revenue amounting to $479 million.Compared to the same quarter last year, that’s growth of 97%. An investor couldn’t ask for news that’s better than a nearly 100% year over year increase in revenue.
Twitter’s Q4 Bad News
While Twitter blew away expectations with regard to revenue in the fourth quarter, they did have their share of bade news to report as well. Unfortunately, the company has been struggling to get new users interested in their social network. As a matter of fact, Twitter only added a meager 1% to their active users. As the new user data continues to be a problem, investors are starting to grow concerned about the company’s ability to bring in a larger audience. Without new user growth, investors are concerned that Twitter may reach a plateau relatively soon. However, there is one trick the company has up its sleeve that may solve the new user debacle.
Google Team Up Confirmation
Recently, there have been quite a few rumors flying around online about a team up between Google and Twitter that’s built around the Firehose. The Firehose is a pool of all twitter data streaming in real time. That includes tweets, pictures, favorites, retweets, and more! Google and Twitter did this once in the past between 2009 and 2011; however it ended as Twitter felt that with Google having their results in real time, the deal may jeopardize their own page view totals. However, Twitter only added a meager 1% to their active users.
