“Expectations are for Twitter to report earnings of 1 cent per share on revenue of $350.91 million. The average move on the day of results has been 17% for the stock, so it is likely to be a volatile day whatever the actual figures.
“Twitter’s own unique adjusted profits metric allowed it to post a profit for the second quarter of 2 cents per share, against forecasts of a small loss. The risk of disappointment this time round is a high one, given that the company trades on a multiple of around 130 times earnings.
“Broadly the company still faces declines in user growth rates, while the monetisation aspect, a big problem for Facebook until well after its IPO, is still likely to dog Twitter.”
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