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Investing in Social Media Stocks: How Profitable is Investing in Twitter (NYSE: TWTR) in 2019?

Competing against a massive rival such as Facebook (FB), Twitter might have had a hard time in the last quarter of 2018, when the social network lost 2.7% of active users, in comparison to the third quarter of 2018 when this rate was set at 1.5%.

At the same time, Facebook’s number of monthly active users surged for the same period by 9% even though this social media giant already has over 2 billion registered users.

Moreover, Twitter stocks went down by -3% during February, however, investors are not giving up on TWTR stocks, considering that this social media company s anticipating a bull run.

Things Might Not Be That Bad for Twitter (TWTR) Despite Regulatory Headache and MAUs Declines

As Twitter reported MAUs (monthly active users) declining for the past quarter of 2018, the company decided not to include reports for monthly users any longer, instead deciding to only share numbers for monetizable daily active users (mDAU), which made market watchers not as pleased by the decision that Twitter made as it is always the case when a publicly traded company decides to disclose this type of information.

Moreover, Twitter might be going through a turmoil due to the regulations regarding data protection of social network users, which might also be affecting TWTR shares in the market, however, things may not be as bad as it appears for this social media stock.

Even though Twitter’s MAU is dropping, mDAU is rising, recording increases by 9.5% year to year, alongside having the company reporting 24% of rise in revenue growth year to date.

At the same time the average revenue per user for the company increased as well, from 7.50$ per user in 2017, to 9.48$ in 2018.

Even though Twitter is failing at attracting new users, the company is finding ways to monetize on their existing user base, which may bring more profits to the company and an improved growth rate for the following period.

 

 

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
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