Twitter, Inc. (NYSE:TWTR) is all set to announce its first quarter earnings for fiscal year 2015. Analysts forecast the company raking in more than $450 million in revenue, and EPS of around $0.04.
The social media giant has come under fire for its particularly lethargic performance for the past few years from multiple high valuation issues with the current management and on top of that, a negative market sentiment making it a very easy target for short sellers to sell off their stakes. Now, it is the most ‘loved’ and ‘sought after’ company.
Previously at its analyst meeting in November, the company pointed to at least more than 500 million unique page views per month, mostly from logged-out visitors (those who check out news feed, but are not registered Twitter users). This represents a good opportunity for the company to bring those logged-out visitors into its fold to generate more revenues, but that may not be so simple to try to convince them.
Twitter is also reporting heavy traffic, with over 125 million people visiting the website but not logged in every month. The company witnesses untapped potential in terms of its unlogged users. In response to this, it announced that, instead of asking users to sign up, it would ask them to engage with the latest trends and happenings by clicking on the ‘hashtag’ symbol that they come across in Google search engine, with whom Twitter has entered into an agreement.
In addition, the company has revamped its homepage by simplifying its welcoming address as "See what's happening right now. Find community, conversation and inspiration about the things you love.” instead of a few awkward questions being asked. It is part of Twitter’s new mission goal to "connect everyone to their world”, and not just connecting with friends.
The result was that the company announced a strong fourth quarter earnings, though it is not entirely clear if it had to do with the initiatives taken as described above. Nevertheless, if this quarter’s earnings prove to be an even bigger hit than the previous quarter, then it will be a sure sign that the restructuring of the company’s image, message, and vision statement has paid dividends. If that happens, Twitter would have retraced almost the entire sell-off and placed near the ‘highs’ that were printed last October. The microblogging site is speculated to have embarked on a journey of restructuring.
Twitter stock price ended the day last Friday on $50.82. Investors stock quotes expect that to shoot up around less than $55.
No comments:
Post a Comment