What Should You Expect From Twitter's Earnings Today?

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Twitter Inc TWTR will be releasing its second-quarter numbers post the market closing on Tuesday. PCMag.com Editor-in-Chief, Dan Costa, was on CNBC to discuss what kind of numbers traders and investors should expect the company to release.


Needs To Figure Out The Direction


"I think, unfortunately we are probably going to hear more of the same on the revenue side," Costa began. "I think, the expectations are pretty low at this point and the company really needs to figure out which direction it's going to go in. So, right now you have got Jack Dorsey in charge, he is running the company, they are looking for a CEO."


He continued, "I think, investors are going to want to know which direction the company is moving in?, who is going to lead it?, and really how are they going to add to this model that seem to have stalled a little bit 9 years into the company's founding."


'Add Some Utility'


On Twitter's inability to monetize its user base in a better way, Costa said, "It's hard to imagine that 300 million active users is not enough to sustain a profitable media business. But you compare it to Facebook, which is now well over a billion users. And if you don't just look at the number of users, but how much time they are spending on the service, how engaged they are, Facebook numbers will blow Twitter's away. And [a lot of that] just speaks to how the product is constructed."


"So, I think, Twitter is going to look at the product, look at what they are offering and try and add some utility in order to just create a better product and be able to monetize those users better," Costa concluded.

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