Twitter Inc (NYSE:TWTR) Reported Growing Number Of Active Monthly Users In Q2 2014; Surpassing Analysts’ Expectations; Shares Reached Zenith

Posted In Technology - By Grant Murphy On Wednesday, July 30th, 2014 With 0 Comments

Dallas, Texas 07/30/2014 (ustradevoice) – Twitter Inc (NYSE:TWTR) put a halt to the user growth in Q2 2014, thanks to the services and product tweaks which were specially designed around the World Cup of summers. Twitter on July 30, 2014 reported the number of active monthly users; which led to sky-rocketing of the shares of company. Twitter announced that the number of active users increased more than expected, i.e. 24%. In the meanwhile, the company also announced that the gain totalled to $7 billion to existing market value of the company.

Surpassed targets for all parameters

It must be noted that earlier Twitter Inc (NYSE:TWTR) had struggled to change the path of declining rate of growth. Now, almost all the parameters of its financial report surpassed the analysts’ targets. It is quite interesting that before the after-hours surge on July 29 2014, twitter had already lost 40% of market value since 2014 beginning. In the Q2 2014, Twitter witnessed an increase of users to 271 million; which is still lower than its rival Facebook which reported 1.3 billion users.

Explanation from the Analysts

The analyst at Sterne Agee, Arvind Bhatia explained that the expectations from Twitter Inc (NYSE:TWTR) had reached the lowest level because of the concerns about growth. However, in the U.S. the performance of twitter is pretty good; which meant that for the meantime, the speculations and rising concerns over U.S. growth could be halted. However, Arvind Bhatia explained that one needed to look at the next quarter for finding out whether Twitter can continue on the upscale of user growth or not.

Football World Cup 2014 and Twitter Users’ Growth Connection

It must be noted that the rapid-fire format of Twitter Inc (NYSE:TWTR) has always proven to be popular; especially in comparison to global events. Boost from Football World Cup 2014 promoted the number of users on Twitter. In the analysts’ conference call, the Chief Executive Officer of Twitter, Dick Costolo said that the tournament compelled the existing users to devote more time to Twitter. However, he added that the tournament did not gave in much contribution to the increase in the number of new users during the quarter.

About the Author

- Grant Murphy graduated from Florida State University with Master in Finance. His experience on WallStreet is depicted by the dept in his writing.

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