Twitter revenue was much better than anticipated as quarterly earnings gave it a larger market cap than its rival Snap, the company behind Snapchat.
According to the results, Twitter revenue rose by 2% year on year to $731.6m, beating the Wall Street estimates of $686.1m. Although American revenue and users fell by 8% and 1.5% respectively, the company saw a 17% increase in revenue from abroad, especially from Japan which saw a 34% increase to $106m.
At the news, Twitter shares jumped up by as much as 25% in New York towards $34: a $10 bump per share. Shares have since pared to $31.11.
This marked the first quarterly profit for the company, which had been boosted by a better advertisement strategy tailored more towards individual users. Twitter had committed in October to slashing its expenses and had also started to shift away from its over-reliance on the American market.
Founded in 2005, Twitter went public in 2013 with shares first being traded at $26 each. Serious questions had been raised by investors over Twitter’s business model as the company continually failed to make a profit but held a prominent position within the public sphere and particularly in America, where the Twitter account for Donald Trump has 47.6m followers.
At the beginning of 2017, stock prices for Twitter were around $16. Twitter’s value has steadily increased in value over the course of 2017, finishing the year at $24. Snap, which had been steadily declining in value through 2017, from just over $26 in early March to $14 by mid-December, posted a rosy picture of its Q4 earnings.
Publishing on Wednesday, shares were trading at $20 following the results: Snap was down 7% this morning. Twitter now has a market cap of $25bn, $1bn more than Snap.
Facebook published its fourth quarterly-figures last Wednesday, although the platform experienced its slowest user growth on record it nonetheless exceeded earning estimations.
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