Twitter Earnings Watch: Are Users Flying the Coop?

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April 29 (Bloomberg) -- S&P Capital IQ's Scott Kessler and Bloomberg's Cory Johnson and Paul Sweeney break down today's earnings reports from Twitter and eBay. They speak with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Let's continue the conversation about twitter.

What are the three things people are wanting to look at?

Earnings per share, sales growth, and users.

Is that the key for what is going on?

Or is it something else?

Completely wrong as usual.

I kid.

Revenue growth, absolutely.

Revenues is an important thing for this company.

Profit is something people are not generally looking at it all.

Operating profit, net profit, i don't think that people try to understand what is going on are looking at that.

The numbers that are interesting are the numbers of revenue growth, user growth, monthly active users.

The monthly active users worldwide grew six percent, which was a faster rate of pace than the previous quarter.

The reason why it is important is their revenue per user, per timeline view, both of those numbers increasing in a year-over-year basis.

I think they have not only ground users -- not only are they growing users, but you see them getting a lot more revenue from the users.

Users are figuring out how to use the service better.

Advertisers are finding people they are looking for more often.

There monetizing at a better rate.

Let's bring paul in here.

It seems as though investors are bidding down the price of the stock.

It is often percent three but you attribute that to?

We sell that -- we solve that.

The focus for the street when it comes to twitter, the growth of its user base number one, and the engagement of its user base.

It is those metrics that drive advertising sales.

It is strange this quarter.

He had a first -- good first quarter.

The investors are absolutely focused on this monthly average user growth.

It is slowing year-over-year.

Down from 30% growth last quarter.

39% a quarter before that pretty negative trend is concerned.

They know that is going to catch up to the stock and the evaluation.

Scott kessler, s&p capital iq , that's an upgrade for the sale.

You did that last month.

Do you want that hold rating questionnaire we have a hold rating right now.

We haven't been positive on twitter as a public company.

It became public last year.

We cannot a week thereafter and had a sale opinion.

It was painful when the stock got close to $75. as we sit here today, we have a neutral view.

What cory and paul indicated are spot on.

In light of what facebook reported in the upside to both web news and earnings, folks might be disappointed about what twitter delivered here.

That is pressuring the stock in trading.

Cory johnson, will they be pressure on the board of twitter to change the company drew gigi plan?

Or are they going to continue down the path?

I think the stock came out out of an excitable evaluation.

They extended their run.

I'm sure they had a discussion at the time, do they want to feed the quacking duck?

They seem to be sticking to this same plan.

We will see what they have to say on the conference call.

This is a business where the fantastic user growth is in the past.

Facebook re-accelerated.

They figured out mobile.

Twitter came to the public market with a fairly robust mobile product.

At least as much as we have seen in the young world of mobile.

The notion they can turn around the same way facebook could, that they can add users with a new mobile product like facebook did is incorrect.

Paul sweeney, how is it possible that a medium like twitter, which is used by some of the most noted investors like carl icahn, that communicate directly to his constituency, used all over the world, how is it that it isn't this a groundbreaking moneymaking machine?

They are still trying to figure that out.

I think they are.

Clearly the user base, the growth rates have been spectacular.

We know from many parts of the population it is a fantastic service.

One of the challenge for twitter has been a social phenomenon, a challenge to attract advertisers.

How do i get advertising messages into my feed in such a way that it is not too obtrusive for the social media experience?

I need to integrate image, video.

There are products that online mobile advertisers are demanding with their budgets.

That is something that twitter has been slow to monetize.

They do have a growing user base.

The actual revenue per user is going up.

There are good things going on here.

In this tech market with what we see in multiple stocks there is no room for error.

Likes scott kessler -- i mentioned carl icahn as an investor.

He has been pressuring ebay.

Tell us about the results there.

Ebay for the most part, the results that people should be pleased with.

What people probably are wondering about are two things primarily.

Number one, they are wondering about the second quarter guidance.

What ebay indicated, and the tip -- and the company is conservative, they are taking that context.

It is somewhat less than people were expecting.

The second thing which is interesting, essentially the company is bringing back a substantial amount of capital from overseas for potential future use.

They took a major tax hit related to that.

We will see what they do with that capital.

We think it is likely they will use it for purchase activity and maybe even the initiation of a dividend.

That is what is going on with ebay.

We have a hold opinion on the

This text has been automatically generated. It may not be 100% accurate.


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