Dallas, Texas 04/29/2014 (FINANCIALSTRENDS) – Twitter Inc (NYSE:TWTR) is scheduled to report results from its Q1 2014 operations after markets close today and its management team is slated to address an earnings call at 5:00 PM today. In the run up to the earnings release today, the stock was trading 0.66 percent above its previous day close.
Ahead of today’s earnings call analysts are looking at the micro blogging site reporting a big increase in its sales figures on the back of more active users being added and the firm managing to generate newer avenues of advertisement revenue. It is appropriate to note here that in January this year, the stock price of Twitter Inc (NYSE:TWTR) took a big hit after it reported a slower than expected addition to its user base.
Analysts have been cautious about the prospects of the social media firm during the reporting quarter. Wedbush in its research note to clients ahead of the earnings call has advised investors to take a long term position on the stock, while reducing the price target on the stock to $50 on the back of concerns about the speed at which it would be able to add new users.
Investors should note that when the micro blogging site reported revenue for the first time after going public in January this year for operations which ended on 31st December, it had reported earnings per share of 2 cents. This did not seem to meet analyst expectations since they went after the company management for not doing enough to grow the user base faster.
Concerns Of Investors
The concerns of the analyst community was centred around the fact that Twitter Inc (NYSE:TWTR) reported 241 million active users measured on a monthly basis by December of 2013 and that it had managed to add only 9 million users in the last quarter of 2013.