Maximum and minimum EPS estimate for the current quarter is projected at $0.12 and $0.06, respectively, according to 24 analysts. And part of the reason is the elephant in the room: Donald Trump. One problem: Anyone can read tweets without signing up.
And that means fewer advertising opportunities.
Twitter reported 330 million monthly active users in Q4, which was flat sequentially but up 4% year over year. By contrast, Facebook has 2.2 billion and Instagram has more than 800 million. As a point of comparison, in the last quarter of 2016, Twitter added 1 million users.
"The results we saw (Thursday) affirm the direction of Twitter's 2017 strategy focused on live video". Twitter reported 330 million active users a month, a rise of 4% on past year but no change on the previous quarter. That's above the $687 million that analysts polled by FactSet were expecting. On a non-GAAP basis, EPS was $0.19, up from $0.11 in the year-ago quarter. Zacks Investment Research raised shares of Twitter from a "hold" rating to a "buy" rating and set a $18.00 price objective on the stock in a research report on Wednesday, August 2nd. As of mid-morning Thursday its shares were up almost 23 percent. It peaked during the day at $35, its highest level since 2015.
Twitter faces multiple challenges.
Engagement also got a boost from Twitter's move to 280 character limits from 140, the comapny said. In November, the company published a clearer version of such policies. But enforcing them will be a bigger hurdle.
The social media stalwart is also dealing with the fallout of a New York Times investigation which found that a company called Devumi had sold millions of fake followers to celebrities, athletes and politicians. The company is likely still making up that shortfall.
Then there's the issue of automated accounts made to look like real people.
U.S. announces takedown of global cyber theft ring
The City of London Police are credited alongside other global police forces for "siginificant efforts and timely cooperation". Infraud is said to have 10,901 registered members and was founded by Bondarenko, a 34-year-old Ukranian man.
Twitter's average daily active usage or DAU for the quarter grew 12 percent year-over-year, marking the fifth consecutive quarter of double-digit growth.
It's hard to tell how many fake accounts are out there.
Expanding to new channels of demand for its ad products. But the Times referenced a report saying it could be as high as 15 percent. "But we won't know if this is working until we see user growth", said Forrester Research analyst Erna Alfred Liousas in an e-mail.
Despite hitting profitability, Twitter will soon have to navigate its future business without Chief Operating Officer Anthony Noto.
"It shows that Twitter has staying power", Grygiel said.
"Now (that) he's gone, who's running the company?"
But analysts were split on what lies ahead for the company.
"I'm proud of the steady progress we made in 2017, and confident in our path ahead", Twitter CEO Jack Dorsey said in the company's report. Year-to-date, TWTR has gained 12.08%, versus a 0.30% rise in the benchmark S&P 500 index during the same period.