Posted on 10/24/2019 10:04:23 AM PDT by LesbianThespianGymnasticMidget
Goldman Sachs downgraded Twitter on the back of the social media company’s dismal earnings performance on Thursday.
The firm downgraded the stock to neutral from buy and slashed its price target to $34 from $52. Goldman also lowered its 2019, 2020 and 2021 earnings estimates to “reflect the company’s advertising issues.”
“Although we continue to see significant and growing value in the platform evidenced by broad-based, accelerating DAU growth, the lack of visibility into the remediation of the advertising platform, uncertainty around Twitter’s ability to drive broader advertiser demand, and the risk of further multiple compression drive us to lower our rating to Neutral,” said Goldman’s Heath Terry in a note to clients.
Shares of Jack Dorsey led Twitter plunged as much as 20% on Thursday as product issues and lower-than-expected advertising “headwinds” weighed on third-quarter results. Advertising revenue only grew 11%, compared to 29% in the second quarter and product bugs negatively impacted ad pricing.
Twitter reported earnings of 17 cents per share on revenue of $823.7 million, while Wall Street was forecasting earnings of 20 cents per share on revenue of $874.0 million, according to Refinitiv.
Goldman now estimates 2019 year end earnings of $1.87 from $1.98 and revenue of $3.459 billion from $3.612 billion.
People are just tired of it, which IMHO is the real reason TWTR's earnings are collapsing
Good.
Drive it down to the ground.....................
Since the beginning of Twitter, what are the years in which Twitter made an operating profit?
Translation: Broaden your participation parameters, stop suppressing half of your potential customer base and demonetizing those you don’t like politically. Do that and watch your stock prices rise again!
Wow. Twitter isn’t such a good investment?? Sad if any invested big bucks in Twitter.
Needs to go the way of the companies that vanished back during the DotCom crash.
The ONLY truly useful purpose for a ‘service’ like Twitter is if it is an unbiased uncensored (with exceptions for porn etc.) medium for rapid exchange of thoughts and idea. Failing that, what’s the point?
They need to decide what they are, and what they are willing to do to survive as a company.
Buy low, Mr. Trump. Buy low.
Just another fad.
When will they downgrade Netflix trading at over 200 earnings?
Good. Twitter is a cesspool for vermin.
” If you click on any political hashtag, you typically must scroll through dozens of TDS hate posts to see a single pro-Trump tweet.”
Pew just published the following:
“97% of the tweets mentioning national politics came from just 10% of users, the study found.
Twitter users who strongly disapprove of Trump are prominent on the platform: These users generate 80% of all tweets from US adults, and 72% of tweets mentioning politics, Pew found.”
[my gut says that paid trolls and bots are the most likely cause of the above ... nonetheless, whatever the cause, this essentially proves what I’ve always believed, namely that the fool Dems have rushed to the far left based on the false belief that this tiny majority of strident assholes is somehow representative of their larger rank and file.]
If Trump leaves Twitter then Twitter will collapse.
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