Twitter stock soars 25% after company reports first-ever profit

Isaac Cain
February 9, 2018

The company maintains price to book ratio of 3.98 industry average at 7.21.

"Advertisers who had access to the new compose experience created 26pc more Promoted Tweets and launched 13pc more campaigns, spending 23pc more on Twitter".

Twitter has reported its first quarterly net profit assisted by a video advertising sales rise.

Twitter announced its earnings for the final quarter of 2017, this morning, and it's a pretty good quarter for the social media giant. Finally, Contrarius Investment Management Ltd grew its stake in Twitter by 1.3% in the 3rd quarter. Toronto Dominion Bank lifted its holdings in shares of Twitter by 21.3% in the 2nd quarter. (TWTR) on Thursday reported a net profit for the first time and returned to revenue growth.

Several institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank Of Canada reaffirmed an "underperform" rating on shares of Twitter in a research report on Saturday, June 3rd. Vetr downgraded shares of Twitter from a "strong-buy" rating to a "buy" rating and set a $24.17 target price on the a report on Tuesday, November 21st.

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Shares of Twitter (NYSE:TWTR) traded up $1.67 during mid-day trading on Tuesday, reaching $26.91.

But analysts were split on what lies ahead for the company. Matt Derella, Twitter's vice president of global revenue and operations, will continue to lead the company's ad sales efforts. Twitter signed 22 new live streaming partnerships in Q4 and hosted more than 1,140 live-streamed events. The shares were sold at an average price of $17.82, for a total transaction of $8,063,550.00. Following the transaction, the director now owns 2,441,312 shares in the company, valued at $49,021,544.96. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Twitter also forecast a GAAP profit for all of 2018. The disclosure for this sale can be found here. 146,732,709 shares of the stock were exchanged, compared to its average volume of 32,007,105. (TWTR) opened at 18.17 on Wednesday. The company operates in the Technology sector with a market capitalization of 20.93 Million. Twitter still refuses to disclose the its daily active users (DAU), so it's hard to interpret the full significance of that daily audience growth.

Twitter (NYSE:TWTR) last released its quarterly earnings data on Thursday, February 8th. Analysts expected Twitter to post earnings of 14 cents per share meanwhile, Twitter posted 19 cents per share.

"At best we can look at the most recent period's results as marking an important milestone in the company's turnaround, perhaps bringing the future forward by a quarter", wrote Brian Wieser, an analyst for Pivotal Research Group, in a note. The company earned an adjusted $0.12 a share, missing the $0.14 that Wall Street was anticipating. Ad revenue fell to $2.1 billion from $2.25 billion a year ago, while data licensing and other revenue grew to $333 million from $282 million in the year-ago quarter.

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