Twitter: The Good, the Bad and the Downright Ugly (Layoffs)

This is not investment advice. The writer has no position in whatever of the stocks mentioned. WCCF TECH INC has a disclosure and ethics policy.

Twitter has been having a flake of a rollercoaster ride from a fiscal perspective in recent times. Today the company announced its latest functioning numbers to the markets, just along with that came some rather unsurprising boosted news.

The Good

Twitter (NYSE: TWTR) released its earnings today during trading hours and trounce estimates for the third quarter coming in at 13 cents per share excluding items on revenue of $616 1000000 compared to an expected 9 cents per share on $606 million.

Boosted good news came in the class of its user numbers, now up to about 317 meg which again slightly vanquish expectations, up another four million from the previous quarter while the number of daily agile users also increased past 7%.

In early trading today, Twitter stock was up to as high equally $xviii.12 from a shut yesterday of $17.29 for a gain of 4.8%.
Unfortunately, this is where the good news ends.

The Bad

Since then, information technology would appear that reality has set up in and the stock closed the mean solar day out at $17.40, or about 0.6% up.

As many will be aware, Twitter (NYSE: TWTR), despite beating expectations as per the higher up, in real terms is non actually profitable. On a GAAP footing, the company posted a cyberspace loss of $103 million, translating into a 15 cents per share loss.

Many volition no doubtfulness remember the exciting heights of a $25+ per share price as recently as earlier this month when many in the market expected the firm to be acquired. Unfortunately that 2 week catamenia a few weeks ago must now seem a distant retention as all of the potential suitors pulled out of discussions one past 1 and the share price collapsed to beneath its pre-rumour levels which of course is where we are at present with Alphabet (Google), Disney and Salesforce.com all failing to submit a bid.

Still, the news isn't a complete disaster, revenue is increasing, equally are user numbers and engagement, all promising signs and senior direction has of course been making the right noises regarding aiming to hit profitability in 2022.

BAM! Hither information technology comes folks, Twitter the UGLY!

Well, it's no surprise really considering I put it in the article title. The house has announced that it will be cut almost 9% of its global staff from the full of 3,860 that it had on the books in June. This of form comes hot on the heels of a like price cut round well-nigh a twelvemonth ago where 336 people were laid off when Jack Dorsey took over as permanent CEO (he had been interim CEO prior).

The over 300 people at present to go are expected to be cutting primarily from Twitter's (NYSE: TWTR) sales and marketing departments.

Of form in the highly charged atmosphere of a tech startup, major restructuring and layoffs are frequently seen as a death knell, especially in the competition for the brightest minds. Additionally, Twitter invested heavily in these divisions banking on continued major growth in user numbers but user growth has slowed somewhat since the firm hit 300 million users.

Twitter's marketing and sales costs run at well-nigh $473 million, approximately 40% of its revenue whereas spending on these divisions at competitors comes in significantly lower existence 19% at Yahoo, xv% at Facebook and 12% at Alphabet (Google) according to analysis of earnings reports by Reuters.

As such, it makes sense that this is where the axe should fall. Unfortunately where the company is at present, information technology needs to effigy out its game programme and turn the business around, and so maybe when it'southward a bit more of an attractive proffer, it will succeed in courting a rich suitor, but for now, another tech firm is coming to grips with the harsh reality of the financial markets and perhaps soon with activist investors.

Source: https://wccftech.com/twitter-good-bad-downright-ugly-layoffs/

Posted by: mccluskeyvarty2001.blogspot.com

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