Twitter Share Price: Twitter jumps most in a year after sales top estimates

By Kurt Wagner


Twitter Inc. jumped the most in a year after it reported fourth-quarter revenue that topped analysts’ estimates, capitalizing on a robust holiday season for digital advertising.

Revenue rose 28% to $1.29 billion, compared with the $1.19 billion average analyst prediction, according to data compiled by Bloomberg. Twitter on Tuesday cited “strong brand advertiser demand in the U.S.” as a driver of ad sales in the fourth quarter, according to the company’s shareholder letter. Net income rose to $222 million, or 27 cents a share.

The shares soared as much as 16% on Wednesday, the most since Feb. 6, 2020, hitting a seven-year high. They were trading at $66.76 at 10:04 a.m. in New York, up 12%. Several analysts raised their price targets on the stock.

At the same time, the social network added fewer new users than projected and warned that audience gains in 2021 will slow compared with last year’s pandemic-fueled surge.

Twitter reported 192 million daily active users, 26% growth from a year earlier but shy of estimates for 193.4 million. Overall for 2020 the company added 40 million new daily users, crediting the gains to both “product improvements” and a series of major events that drew in audiences, including the U.S. presidential election and discussion around the global Covid-19 pandemic.

It was a strong quarter for digital advertising companies in general, which were buoyed by the push toward online shopping during the pandemic. Facebook Inc., Alphabet Inc.’s Google, Snap Inc. and Pinterest Inc. all reported better-than-expected revenue for the period. Still, Twitter’s lackluster user additions could reignite concerns about long-term growth, especially after the company permanently banned U.S. President Donald Trump from the service in January after his comments were seen as encouraging a mob at the U.S. Capitol.

At the same time, the social network added fewer new users than projected and warned that audience gains in 2021 will slow compared with last year’s pandemic-fueled surge.

Twitter reported 192 million daily active users, 26% growth from a year earlier but shy of estimates for 193.4 million. Overall for 2020 the company added 40 million new daily users, crediting the gains to both “product improvements” and a series of major events that drew in audiences, including the U.S. presidential election and discussion around the global Covid-19 pandemic.

It was a strong quarter for digital advertising companies in general, which were buoyed by the push toward online shopping during the pandemic. Facebook Inc., Alphabet Inc.’s Google, Snap Inc. and Pinterest Inc. all reported better-than-expected revenue for the period. Still, Twitter’s lackluster user additions could reignite concerns about long-term growth, especially after the company permanently banned U.S. President Donald Trump from the service in January after his comments were seen as encouraging a mob at the U.S. Capitol.