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Here's What Twitter Metrics You Should Be Watching For Today

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Here's What Twitter Metrics You Should Be Watching For Today
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Twitter Inc (NYSE: TWTR) earnings have been at the heart of many issues in the past. Tech companies can be difficult to value at times due to many variables, let alone quarterly reports. However, with Twitter reporting earnings after the close today, what numbers are important to gauge the companies performance over the last quarter?

Investors will look at numbers such as revenue and EPS to get a view of how well companies may have done. While important, there are other metrics that can be as important as these traditional measurements. Benzinga reached out to multiple sell-side analysts to get their insight on some non-revenue and EPS metrics that they are watching after the close.

Macquarie's Ben Schachter:

  • MAU's
  • Number of Advertisers

Axiom Capital's Victor Anthony:

  • MAU's
  • Owned & Operated advertising growth
  • Adj. EBITDA Margins
  • Q2 2016 guidance

Victor also notes to look for commentary, whether in prepared remarks or on the conference call, on managing churn, as well as updates on the top priorities for 2016.

Related Link: Twitter Preview: Axiom Analyst Sees Jack Dorsey's Efforts To Show Progress

Wedbush Securities Michael Pachter:

  • None: "It's a waste of time."

Now, Pachter's analysis might be confusing, but here is his thought. He says, "There is no point in tracking metrics that cannot be validated. They don’t provide number of ads, ad rates, cost per click, etc.  Forecasting a metric that can’t be audited has no value, sort of like forecasting Amazon Prime members."

Each analyst will have their own subjective view on whether a company's reported numbers really tell the whole story, especially if they can't confirm or audit it for themselves. Other analysts may use channel checks, or third-party research, to provide an estimate to gauge.

Looking into these third-party sources is a good idea when reading any analyst report. Sometimes, their can be mistakes in interpretation of data.

Latest Ratings for TWTR

DateFirmActionFromTo
Nov 2016OTR GlobalDowngradesMixedNegative
Oct 2016OppenheimerUpgradesUnderperformPerform
Oct 2016Goldman SachsMaintainsBuy

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

Posted-In: axiom Ben SchachterAnalyst Color Earnings Previews Exclusives Analyst Ratings Trading Ideas

 

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