Shares of Twitter jumped 8.9%

Shares of Twitter jumped 8.9%

access_time2019-07-29 13:08:56

Twitter earnings for the second quarter missed Wall Street estimates but the social media site reported strong revenue and upbeat user growth. Shares of Twitter (TWTR) jumped 8.9%, closing at 41.52 on the stock market today and moving into a buy zone.

The online messaging provider reported adjusted earnings of 5 cents per share, which excluded an income tax benefit of more than $1 billion related to corporate restructuring. Including that benefit, earnings came in at $1.58 a share.

Revenue jumped 18% to $841 million. Wall Street expected Twitter earnings of 19 cents on revenue of $829 million. Twitter has 139 million revenue-generating daily users, up 14% vs. a year earlier and above estimates. Total advertising revenue grew 21% to $727 million.

The company sees third-quarter revenue of $815 million to $875 million. The midpoint of $845 million is below Wall Street estimates for $872 million.

As for key social media rivals, Facebook (FB) beat  second-quarter earnings and revenue estimates late Wednesday, but executives sees slowing revenue growth going forward. Facebook stock rose to 208.66 intraday Thursday before reversing lower, losing 1.9% to 200.71. Facebook stock held above a 198.58 buy point from its own long cup-with-handle base. On Friday, Facebook stock dipped 0.5%, closing at 199.75.

Late Tuesday, Snapchat parent Snap (SNAP) reported a smaller-than-expected loss amid strong revenue growth and booming user gains. Snap stock shot up 19% on Wednesday, edging up 0.5% on Thursday. Snap stock edged up 1.1% on Friday, closing at 17.89.


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