Twitter Stock is Steady. Twitter stock price performance remains steady over the last month despite missing second-quarter revenue and earnings estimates.
Lower ad revenue during the quarter negatively impacted its overall performance. However, the social media company says ad revenue has been recovering over the past month.
Its second-quarter revenue of $683 million declined 18% from the past year period and missed analysts’ expectations by $24 million. Its ad revenue plunged 22% year over year in the second quarter.
Total ad engagements soared 3% year over year, yet cost per engagement declined 25%. Its average monetizable daily active users (mDAU) jumped 34% to 186M year over year, topping analyst’s expectations by 173.8M.
On the positive side, its adjusted EBITDA of $132.8 million enlarged from analysts’ consensus for $109.4 million.
“We have completed our ad server rebuild and are making progress accelerating our performance ads roadmap. With a larger audience and progress in ads, we are even better positioned to deliver for advertisers when the live events and product launches that bring many people and advertisers to Twitter return to our lives,“Ned Segal – Twitter CFO
said Twitter’s CFO Ned Segal.
The Twitter stock price soared almost 17% year to date. Its shares are currently trading well below from 52-weeks high of $45 a share. Security risks and lower than expected second-quarter results negatively impacted its stock price performance.
Despite all that, Twitter stock price outperformed when compared to closest peers including Facebook. The Facebook stock price rose 12% year to date.
Citi has provided a price target of $36. The firm looks positive about the stock’s performance.
The firm says they expect “modest strength” in the stock regardless of the 22% drop in ad revenue. It also looks optimistic over revenue performance in the coming quarters.
On the other hand, CEO Jack Dorsey hinted about changes in the revenue model. “You’ll likely see some tests this year,” Twitter CEO said.