Twit­ter’s dou­ble-digit re­bound sur­prises an­a­lysts and in­vestors

The Star Early Edition - - INTERNATIONAL - David In­gram

TWIT­TER heads to­wards its quar­terly earn­ings re­port to­day with a stock that has risen more than 40 per­cent since April when much of Wall Street was ready to write off the tech com­pany.

The com­pany’s share price popped af­ter its most re­cent earn­ings re­port in April, when Twit­ter dis­closed bet­ter-than-ex­pected user growth.

The num­ber of peo­ple on Twit­ter will be in sharp fo­cus to­day, when in­vestors and an­a­lysts will see if it has kept up the 6 per­cent year-on-year growth in monthly ac­tive users it re­ported in April.

Twit­ter said then that it had 328 mil­lion users.

“For a com­pany that peo­ple thought six months ago was knock­ing on death’s door and go­ing the way of Mys­pace and AOL, the dou­ble-digit re­bound and the con­tin­ued ac­cel­er­a­tion in users has re­ally sur­prised in­vestors,” BTIG Re­search an­a­lyst Richard Green­field said.

Twit­ter shares closed on Tues­day at $19.97 (R260.34), nearly flat on the day but up 41.4 per­cent since its stock hit a low of $14.12 on April 17.

The S&P 500 in­for­ma­tion tech­nol­ogy in­dex is up 10.6 per­cent since its April 17 clos­ing price.

The surge of in­ter­est is a morale boost for Twit­ter, which has limped through past earn­ings an­nounce­ments, strug­gled to keep a sta­ble man­age­ment and suf­fered un­favourable com­par­isons to its big­ger and more prof­itable com­peti­tor, Face­book.

This month, Twit­ter had a streak of 12 days when its shares closed up.

The busi­ness is ex­pected to re­port quar­terly rev­enue of $536.6 mil­lion.

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