Twitter Shares Jump After Apple’s Privacy Changes Have Minimal Impact On Quarterly Earnings
By Adam
Topline
Shares of Twitter rose after the social media company reported solid third-quarter earnings—with revenue and user growth meeting analysts’ expectations, showing that Apple’s iPhone privacy changes had less of an impact on its business than expected.
Twitter shares rose almost 4% after solid earnings.
Prakash Singh/AFP via Getty Images
The Key Facts
Twitter reported third quarter revenue of $1.28 Billion, an increase of 37% over a year ago. Daily active users increased by 5 million to total 211 M.
The company reported a loss in shares of 54 cents. This was higher than expected due to a one-time settlement that was paid out in September to settle a shareholder lawsuit.
Shares of Twitter, which lost over 1% during trading on Tuesday, rose nearly 4% after the earnings release.Many investors had been closely watching to what degree Apple’s recent iPhone privacy changes would impact Twitter’s earnings, after mixed results from Facebook on Monday and Snap last week.
Despite Apple’s new policy disrupting the ad business of both those companies, Twitter said in its earnings release that the impact of the iOS privacy changes were minimal, with the company’s quarterly ad revenue rising more than 41% from a year ago to $1.14 billion.
Going into the fourth quarter, the company still only expects a modest impact to overall revenues from Apple’s recent iOS changes.
Key Background:
Apple’s privacy changes for the iPhone iOS 14.5 update were rolled out during the third quarter and introduced a new feature called App Tracking Transparency, which reduces the effectiveness and profitability of targeted advertising. Snap, which is almost entirely on mobile, admitted in its earnings report last Thursday that Apple’s privacy changes during the third quarter impacted advertising sales more than anticipated: Investors panicked and shares of Snap plunged over 25% immediately following earnings. Facebook, which reported earnings on Monday, also missed revenue estimates as CEO Mark Zuckerberg warned of “continued headwinds from Apple’s iOS 14 changes,” with shares falling nearly 4% on Tuesday.
Big Number: $14.5 Billion.
That’s how much Twitter cofounder and CEO Jack Dorsey is worth, according to SME’ estimates.
Additional Reading:(*(Here’s Why Facebook, Twitter And Google Shares Are Sinking Even As The Market Sits Near Record Highs ((*(SME
)Snap Shares Plunge Over 25% After New Apple Policy Hurts Quarterly Revenue (SME
)Stocks Close At Record Levels After Tesla Hits $1 Trillion Market Value ((*(SME)
The post Twitter Shares Jump After Apple’s Privacy Changes Have Minimal Impact On Quarterly Earnings appeared first on Social Media Explorer.
Source:: Social Media Explorer
Author: Aaron
Related Articles
Facebook Parent Meta Shares Fall After Company Warns Of ‘Weak Advertising Demand’
By Adam The topline Facebook parent Meta saw its stock plunge in after-hours trading on Wednesday following second-quarter earnings results that came in below expectations,…
Tech Stocks Plunge After Facebook’s Massive Earnings Miss, Nasdaq Falls Nearly 2%
By Adam Topline The stock market fell on Thursday—its first down day in five sessions—as investors once again dumped shares of tech stocks, which were…
Stocks Plunge After Facebook’s Massive Sell-Off, Nasdaq Falls 3.7%
By Adam The topline The stock market fell on Thursday—its first down day in five sessions—as investors once again dumped shares of tech stocks, which…
Twitter Posts $270 Million Loss In First Earnings Report Since Elon Musk ‘Terminated’ $44 Billion Takeover Deal
By Adam Topline Twitter suffered a more severe than anticipated loss Friday morning, its first earnings report after billionaire Elon Musk pulled out of a…
Fortunes Of Social Media Billionaires, Led By Snap’s Evan Spiegel, Plunge Billions On Tuesday
By Adam Evan Spiegel, co-founder of Snap Inc. and CEO speaks at the DisruptSF2019 conference held at Moscone … [+]Center in San Francisco on October…