Twitter Shares Pummeled On Mediocre 2019 Forecast

Twitter Shares Pummeled On Mediocre 2019 Forecast

Normally, it'll only share the growth rates each quarter, showing how many Twitterers are tweeting on a daily basis compared to the previous year.

All of that came alongside Twitter's announcement on Thursday that it's changing its user metrics in earnings releases.

The company's share of the lucrative market is expected to decline this year as rivals like Facebook Inc and Alphabet Inc's Google boost their dominance, according to EMarketer.

The platform said it posted a 255 million US dollars profit in the final three months of 2018, compared with 91 million USA dollars a year earlier, as revenues rose 24 percent to 909 million USA dollars. The growth rate was also 9 percent in the third quarter and had jumped 12 percent in the fourth quarter of 2017, the company said. Twitter said that monthly average users would likely continue to drop as it carries on removing spam and suspicious accounts from the platform.

Twitter said it would stop disclosing monthly active users and switch to reporting active daily users instead.

Despite the growth in 2018, investors are concerned with Twitter's forecast for the first quarter; the company predicted ad revenue fall to between $715 million and $775 million.

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Twitter's decision to jettison reporting monthly users fits a recent trend of major tech companies tweaking their reporting practices. Yes, that means that Twitter's serving fewer users overall, from a pure metrics standpoint, but its subsequent monetization opportunities are improving - good result.

The company in 2018 marked its first full year of profitability under generally accepted accounted principles, according to Bloomberg. Total advertising revenue was up 23% quarter-on-quarter to $791m, with video ads representing more than half of sales.

"We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service", he added.

The higher expenses could eat into eats earnings, some analysts said. This time, however, the company has revealed the number of "Monetizable" Daily Active Users, namely those who Twitter can use for targeted advertising.

The average MAU for the fourth quarter fell 5 million to 321 million, down from 330 million in the year-earlier period. For instance, earlier this week Snapchat reported that it has stopped shedding users and is keeping the service afloat at 186 million daily users-but it's not clear how many of those daily users are monetised by Snapchat.

Twitter is a small part of the digital advertising market that's dominated by Facebook and Google. SOCL has company-specific concentration risk, putting more than 60% investments in its top 10 holdings. The social network said mDAU grew 1.6% to 126 million in Q4 2018 from the prior quarter and 9% from a year earlier, per an announcement.

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