Twitter Forecasts Revenue That Falls Short of Estimates

Twitter Forecasts Revenue That Falls Short of Estimates

Assessment

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Business

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Twitter reported second quarter earnings of $0.13 per share, surpassing analyst expectations of $0.09. Revenue was $602 million, slightly below the anticipated $607 million but up 20% from the previous year. User growth was modest, with 313 million active users, just above the expected 312 million. Despite these figures, the market reacted negatively, with stock prices dropping over 10%. The forecast for the third quarter revenue is between $590 million and $610 million, significantly below analyst expectations of $681 million. Investors are concerned about the lack of substantial growth in profits and users.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was Twitter's adjusted earnings per share for the second quarter?

$0.07

$0.09

$0.13

$0.15

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did Twitter's second quarter revenue compare to analysts' expectations?

It was slightly lower than expected

It was significantly lower than expected

It matched expectations

It was higher than expected

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the market's reaction to Twitter's second quarter results?

The stock price decreased by over 8%

The stock price remained stable

The stock price increased

The stock price decreased by over 15%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the revenue forecast for Twitter's third quarter?

$590 million to $610 million

$600 million to $620 million

$650 million to $670 million

$680 million to $700 million

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the general sentiment among investors regarding Twitter's future performance?

Indifferent to the company's performance

Disappointed with the lack of growth

Excited about user growth

Optimistic about profit growth