This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Twitter Earnings Preview: What Wall Street's Expecting

Stocks in this article: TWTR FB

Updated from 11:38 a.m. to include additional comments from Sterne Agee analyst.

NEW YORK (TheStreet) -- After Twitter's (TWTR) first quarterly results as a public company proved to be disastrous, the micro-blogging social network hopes to get off to a better start in 2014.

At the end of 2013, Twitter actually beat Wall Street estimates, earning 2 cents a share on $242.7 million in revenue during the quarter, but Wall Street became exceptionally concerned about the company's user growth rate.

The San Francisco-based company ended 2013 with 241 million monthly active users (MAUs), up 30% year over year, with the majority, 184 million, via mobile. Twitter added just 9 million users from the third quarter of 2013, a paltry number when compared with the likes of Facebook (FB), LinkedIn (LNKD) and other social networks around the world.

On the firm's earnings call, CEO Dick Costolo became defensive, noting Twitter had to make itself easier for people to use."We have initiatives to improve new user experience, integrate rich media, enhance conversations, better organize content," Costolo said. The CEO went on to say that he didn't think anything needed to change about the platform, just to make it a better experience for all. "We don't think we need to change anything about the characteristics of our platform. We need to make Twitter a better Twitter."

Shares of Twitter were higher in Wednesday trading, gaining 2.5% to $41.73 ahead of the results.

So far, Twitter has done a few of these initiatives to make it more visually appealing and easier for people to get on the service and use it. Twitter has changed the process for signing up from a mobile device, allowed users to find their first tweets, and recently announced changes to users' profiles, making them look more like Facebook profiles.

When the company reported fourth-quarter results, it surprised some by actually giving guidance, a rare occurrence for a growing technology company. For the first quarter, it expects revenue to be in the range of $230 million to $240 million, with Adjusted EBITDA between $10 million and $16 million. Analysts surveyed by Thomson Reuters are expecting the San Francisco-based Twitter to lose 3 cents a share on $241.47 million in revenue.

TheStreet will be live-blogging the results, starting 3:45 p.m. EST.

By and large, analysts were mixed on the company's prospects going into the quarter, with some remaining cautious due to the sharp drop in technology stocks recently. Here's what a few of them had to say:

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs