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Seneca Globe: Twitter Pre-Down As Results Could Be Much Larger Than Predictable-Xerox Corporation


Via David Andrews, Seneca Globe, Excerpt

Twitter, Inc. (NYSE:TWTR) [Detail Analytic Report] plunged over 3.7% during Tuesday before Twitter Inc. releases earnings on Wednesday, income could be much larger than predictable, based on the mobile ad growth trend that propelled Facebook Inc. (FB) and Google (GOOGL) to earnings beats. However, even if Twitter does surprise with big mobile-ad sales, most investors in beleaguered San Francisco-social media firm won’t care.

The Street has been much more focused on Twitter’s user growth as key barometer to its future, not income growth. For earlier year or so, firm has been battling notion that its user growth has peaked while continuing to put up year-over-year sales growth of over 50%.

An analyst with the Altimeter Group, Brian Solis stated that if nothing else, it is the pulse of human society, it tends to break news before news breaks news. It is the heartbeat of real time. He added that because the firm now has to answer to shareholders as a public firm, Twitter may lose sight of what it could mean to society at large.

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