Twitter Recently Lost $750 Million, But Are They Still A Good Buy?

twitter lose 350 million

​I can’t imagine losing $750 dollars in one day let alone $750 million, but that’s what happened to Twitter (TWTR) co-founders Evan Williams and Jack Dorsey just last week. The problems started coming in when Twitter posted first quarter revenue amounts and lowered their sales forecasts for the future. This sent traders into a complete frenzy and the entire Internet was buzzing with the results.

The main reason for all the buzzing of course was that the general public found out about the first quarter results one hour earlier than they were supposed to. Twitter asserted that the revenue numbers were leaked before Twitter was ready to send them out. It’s amazing that one hour can do so much damage, but it did. In that short amount of time, traders sold Twitter so much that the shares dropped 18% and Twitter ended up halting trading for a short time to prevent any more damage.

Interestingly enough, it was later found out that the earnings were leaked by a company called Selerity, which uses bots to scan financial results across the web. Selerity says that the earnings were ready available and that they weren’t leaked or hacked, just found. However, others are saying only a very powerful computer could have accessed that information when they did. And still, why did they even tweet it out? Not cool, Selerity.

All the numbers aside, investors have already been concerned about Twitter and the fact that they are growing uses at a snail’s pace. Many are wondering what happened and why Twitter is failing to get its members excited and their revenues on target.

Lest you think Twitter is going down the tubes, it’s important to note that they still had a Q1 revenue of $436 million, which is incredibly significant. The problem is that they projected much higher and, according to an investor report, “the company expects this revenue impact to continue for the remainder of the fiscal year.”

Twitter CEO Dick Costolo explained that while the numbers were lower than expected, Twitter is focused on “long-term opportunity,” which means they are definitely not giving up quite yet!

There are also many new partnerships and unique products that Twitter will continue to develop in the future. You can now capture videos right on Twitter and Twitter will be partnering with big tech names like Google as well. (GOOG)

Twitter is also acquiring new companies, and for all of these reasons I still think Twitter is a good investment looking forward. Right now could be a good time to buy since the stock still has not recovered just yet and has had a difficult week. Still, use caution. Twitter is projected to have lower than expected results for the rest of the year, but given that the tech space is always expanding and that Twitter is experimenting with new revenue options, there are many opportunities for them to grow and develop in the future.

Would you invest in Twitter right now?

Disclosure: None

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