Skip to main content

Market Overview

Analyst Says Expect The Worst In Twitter's Q3

Analyst Says Expect The Worst In Twitter's Q3

Investors working under the assumption that the worst for Twitter Inc (NYSE: TWTR) has passed may be mistaken, analysts at Cantor Fitzgerald said in a research report. The firm's Kip Paulson maintains a Neutral rating on Twitter's stock with an unchanged $16 price target.

Twitter is scheduled to report its third-quarter earnings on Thursday before the market open and expectations are quite low, Paulson said (see his track record here). The social media company is likely to report a continuation in revenue declines, flattish monthly active user growth amid an intense competition to win over social ad dollars from marketers.

While Twitter has reported a double-digit daily active user growth in each of the past four consecutive quarters, MAU trends flatlined in the second quarter and U.S. MAU actually fell by 2 million. As such, the trajectory of DAUs/MAUs will be "particularly important" in the third-quarter earnings report.

There are also concerns that Twitter's management will report declines in Promoted Tweets and other initiatives which may persist through year-end.

"As a result, we remain on the sidelines until we see tangible signs of MAU growth or sizable monetization improvement that offsets declines in Promoted Tweet and DR formats," the analyst wrote.

Here is a summary of some of the metrics the analyst is modeling for Twitter's third quarter:

  • Revenue: decrease 5.7 percent year-over-year to $581.1 million.
  • Ad revenue to decrease 9.0 percent year-over-year to $495.9 million.
  • Ad revenue per MAU to decrease 12.6 percent year-over-year to $1.50.
  • EBITDA: decrease of 19.7 percent year-over-year to $154.5 million.

Related Links:

Earnings Preview: Food And Beverage Companies McDonald's, Chipotle And Coca-Cola Report This Week

The Week Ahead: Earnings Season Starts In Earnest

Latest Ratings for TWTR

Mar 2021Morgan StanleyMaintainsEqual-Weight
Feb 2021Goldman SachsMaintainsBuy
Feb 2021Pivotal ResearchMaintainsBuy

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings


Related Articles (TWTR)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings News Guidance Previews Reiteration Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

NIUDaiwa CapitalInitiates Coverage On41.5
QMCONorthland Capital MarketsInitiates Coverage On12.0
IBKRJefferiesInitiates Coverage On89.0
MRETFTD SecuritiesDowngrades18.5
SWKSGoldman SachsDowngrades135.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at