Will Twitter Inc (NYSE:TWTR) Beat Users Growth Numbers and Profit Estimates?


Dallas, Texas 07/27/2015 (Financialstrend) – Twitter Inc (NYSE:TWTR) posts its second-quarter earnings on the 28th of July 2015 with all ears on Wall Street waiting to hear what the embattled social networking site has to say about its user growth numbers as well as profit metrics.  Unlike Facebook Inc. (NASDAQ:FB), Twitter has shown signs of struggles in the social networking sector having been a laggard in trying to attract and keeping hold of new users.

Street’s Expectation

 The Street expects Twitter Inc (NYSE:TWTR) to post a 54% increase in revenue, which could come in at $480.7 million. The stock is already down by 50% from its all-time highs of 2013.

The earnings call comes just weeks after CEO, Dick Costolo, stepped down from his post after facing mounting pressure and criticism from shareholders.  Currency fluctuation should be a point of concern heading into the earnings call with analysts concerned it could have a 6% effect on earnings generated abroad. In the first quarter, 34% of Twitter Inc (NYSE:TWTR)’s revenue came from the international market where the social networking platform boasts of 236 million users

However, Twitter Inc (NYSE:TWTR) generated a good chunk of its revenue from users in the US more so on the advertising front, which is its core business. The giant social networking platform has deployed a number of strategies as it tries to attract and keep new users engaged on the platform. How well the company fair’s on this front will have a huge bearing on the stock’s sentiments in the Street going forward.

Facebook’s News Threat

Twitter Inc (NYSE:TWTR) seems to be doing extremely well on the video front thanks to the recently unveiled Periscope app. The app has already broken the 6 million mark in terms of mentions on blogs and social media space. Getting it right on the video just shows the amount of potential Twitter has and the opportunities of growth at hand especially on the advertising front.

 Facebook poses the biggest threat to Twitter Inc (NYSE:TWTR)’s push for growth going forward having tapped into the news business with the Instant Articles service.  Twitter has come to be relied upon as the go-to place for all the latest and breaking news, but Facebook is also looking to be a force to reckon with on this front.

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