Twitter Inc (NYSE: TWTR) shares are in the red this morning after the social media and microblogging company reported disappointing results for its fiscal second quarter.
Key takeaways from Twitter Q2 earnings report
Lost $270 million versus the year-ago $66 million in net incomePer-share loss of 35 was sharply worse than 8 cents of EPS last yearOn an adjusted basis, the communications company lost 8 cents per shareRevenue remained nearly flat on a year-over-year basis at $1.18 billionFactSet consensus was 14 cents of adjusted EPS on $1.32 billion in revenue
On top of advertising slowdown and macro headwinds at large, Twitter also took a $52 million hit from the Elon Musk fiasco, as per the earnings press release.
According to Twitter, it ended the quarter with 237.8 million monetizable daily active users. In comparison, experts had forecast 238.1 million instead. “TWTR” is down nearly 25% from its year-to-date high.
Expert’s remarks on CNBC’s ‘Worldwide Exchange’
The whole debate around Twitter over the past few months has fixated on the Musk deal. But this morning on CNBC’s “Worldwide Exchange”, Alex Kantrowitz (Founder of the Big Technology Podcast) emphasized that fundamentals still matter.
Twitter is around $39 a share, way lower than $54 a share that Musk had offered. So, the market is indicating it expects a settlement and not a Musk takeover. If that’s the case, these fundamentals matter a lot more than you’d imagine even a few months ago when it seems certain that Elon was going to acquire this company.
Twitter and Musk are now set to face off in a five-day trial over the $44 billion takeover deal in October.
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