Embattled social media company, Twitter, will report Q1 earnings before the opening bell on Wednesday. With the shares just $1 off the all-time low of $13.72, pressure is building on the company to perform at a time when its industry peers are either on or near all-time highs in share valuation. In the previous quarter, the company reported a loss of $167 million with the cash burn rate now becoming a serious problem. In addition, advertisement revenue for the same period fell slightly to $638 million. The dual negative effect clearly being shown in the share price performance, down 70% since the March 2015 high of $50. The one unexpected surprise to the upside for Twitter could be the ‘Trump effect’ with the US President regularly using Twitter as his favourite medium to address policy, both domestic and international. The potential financial boost could be a key factor in increasing users and halting the current monthly cash burn, in turn possibly taking the company to the next level.
Jordan Hiscott, Chief Trader
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