Jim Cramer Would Own Twitter Stock Here
What makes Twitter attractive to Jim Cramer here?
On Thursday, Twitter announced a wider-than-expected second-quarter loss as a drop in ad revenue related to the coronavirus pandemic and recent social unrest failed to offset a surge in users and traffic.
The company says it is already recovering from the drop in ad revenue and expects its third quarter to reflect a surge in daily users and general traffic.
The company posted a loss of $1.23 billion, or $1.56 a share, vs. income of $1.12 billion, or $1.43 a share, in the same period a year ago.
The adjusted loss in the quarter was 16 cents a share, and analysts polled by FactSet had been expecting a breakeven per-share result for the quarter.
Revenue came in at $683.4 million, down from $841.4 million the same period last year and below analysts’ forecasts of $701.6 million.
"Last week, Twitter suffered a very public and disappointing security issue. We moved quickly to address what happened, and have taken additional steps to improve resiliency against targeted social engineering attempts, implemented numerous safeguards to improve the security of our internal systems, and are working with law enforcement as they conduct their investigations," Twitter stated in its second-quarter shareholder letter. "We understand our responsibilities and are committed to earning the trust of all of our stakeholders with our every action, including how we address this security issue. We will continue to be transparent in sharing our learnings and remediations."
Despite the miss, Jim Cramer said he would own the stock on its strong DAUs as well as future plans for expansion.
Agree with Cramer? Tell us on Street Lightning.
Latest Videos From TheStreet and Jim Cramer:
- Jobless Claims Are Heading in the Wrong Direction
- Coronavirus Update: Chipotle's Earnings Show Digital Sales, Delivery Up
- Amazon Prime Day Pushed Back, New Date Not Yet Released
- Twitter Posts Second-Quarter Loss, Though Sees It as Temporary
- What Is Trump’s Economic Plan and How Will it Impact Stocks?