Jack Dorsey is Under Pressure
Today, before market opens, Twitter is scheduled to report its fourth quarter earnings. The social platform has faced many challenges over the years since its IPO, and has, for the most part, been struggling to increase advertising revenues and to compete with rivals such as Facebook.
What is likely to interest investors? There are quite a few things. For starters, earnings, of course. Will the result indicate a rise from a year ago – and will the rise be sufficient to impress the company’s skeptic investors? Then there’s the number of monthly active users. Will the Trump Bump be enough to draw in many new users or is the relative complexity of the platform keep growth low?
There are also those who wonder if Trump’s constant use of the platform might not be enough to elevate the company and its shares. The 45th President of the USA has certainly chose Twitter as his number one social platform for debate, controversy and announcements, but will this end up having any impact on the company’s shares? The number of Twitter app downloads to Apple device has been on the rise in 2017.
Investors will also want to see if Jack Dorsey managed to increase profits by cutting costs. Back in October 2016, the company announced a 9% cut in its workforce and shout off Vine – the not-so-than-successful video app.
Another thing that investors will be eyeing is Twitter’s live video streaming strategy. Over the past year Twitter has been quite successful streaming events such as the NFL and the Presidential debate, but some people wonder if this will attract new users, or if it only keeps existing users engaged.
You may recall that not too long ago, there have been rumors on a potential takeover, which companies such as Salesforce and Walt Disney seen as potential bidders, but no serious offer was ever made. Walt Disney was also concerned about Twitter’s inability to address abuse and bullying on the platform, and as public criticism grew, Twitter has targeted this issue recently. Will the efforts be enough to impress new possible bidders? There are a lot of “ifs” involved and we will have to wait and see.