Twitter After Earnings

Twitter, Inc. (NYSE:TWTR) on July 28th announced financial results for the quarter ended June 30th, 2015.

Last week was another lousy one for Twitter. The stock plunged 14 per cent following its earnings report, and is now almost 60 per cent below December 2013’s all-time high.

As the company’s CEO said, from the point of view of the audience and the way it offers the service, twitter still needs to implement several improvements in order to keep the actual amount of users active and also to be attractive for advertising companies. If compared to facebook, twitter is complex to handle and needs at least a little bit of practice to understand how the social network works.

Some disclosed information about the current acquisition decisions indicate that something is changing in the company’s mindset; but not only is the decision to buy a promising startup to create an added value for investors, but it is actually the way you worry and work in order to integrate and develop the newly acquired product or service.

The time has come For twitter to try using new features and adapt to the request of users, which is actually directed in having a smart, flexible and easy to use tool to share opinions, ideas and news.

Apparently, the weekend wasn’t long enough for investors to forget about last week’s Twitter earnings call. Shares of the social networking company plunged again on Monday, falling to their lowest point since the company went public in November 2014. Twitter’s TWTR -5.61% stock was recently down roughly $2, or more than 6%, and had fallen below $30 for the first time in over a year. Twitter’s shares briefly touched a low of $28.91, which is as low as the stock has gone since pricing its IPO shares at $26 apiece (though, the company finished its first day of trading at nearly $45). Twitter reported a surprising 61% bump in second-quarter revenue last week, helped by a strong advertising business, but profitability still eludes the tech company.

Unfortunately for Twitter, the stock remains a non profitable among both value and momentum investors. Despite a strong Nasdaq bull market, Twitter has been in an entrenched downtrend for almost all its life as a public company, with rallies invariably petering out below technical resistance levels. With no margin of safety in terms of valuation and no momentum, Twitter remains a risky bet.