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Thursday, March 28, 2024

Is This The Reason Twitter Is Tumbling After Hours?

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

While overall Twitter's just released Q3 numbers were more or less in line as expected, with Q3 EPS printing at just a penny, the same as expected on $361 million in revenues, $10 million higher than the $351 million consensus estimate, and even EBITDA of $68 million beating estimates of $52.8 million, the stock has tumbled by some 12% since reporting after hours.

And while the headline data appear normal, it is one of the gimmicky, non-GAAP "twitter-specific" indicators that the company came up with just to validate its growth story that appears to be the cause of the drop after hours, namely TWTR's Timeline Views/MAU, which declined across the board, and were down in both the US and Worldwide not only Y/Y (by -6% and -7%, respectively), but also down compared to the second quarter.

 

Is this the end of the great non-GAAP growth story? Judging by the market cap, which just lost about $3 billion in value, the answer may be yes.

 

 

Mark Mahaney seems to think its all ok from here…

 

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