Twitter Gains Ground Ahead Of Q4 Earnings Report

Twitter Video 08.02.21.

Twitter Stock Gets To Multi-Year Highs

Shares of Twitter gained upside momentum and are trying to settle above the $58 level after a Bloomberg report stated that the company was evaluating subscription offerings to boost its revenue.

Subscriptions are widely used in the digital world to provide recurring revenue for companies but Twitter has failed to build a successful subscription business. The company may introduce subscriptions for some of its services or features, but it remains to be seen whether any decisions have already been made.

Twitter will provide its quarterly report on February 9, after market close, and analysts will surely ask questions about company’s plans in the subscription space. Currently, the company is expected to report fourth-quarter earnings of $0.31 per share and report an annual loss of $0.77 per share. However, investors’ attention may shift from the earnings report to the company’s comments about future revenue streams.

What’s Next For Twitter?

Twitter shares managed to quickly rebound after the sell-off which happened at the beginning of the year when the company decided to ban Donald Trump from tweeting after unrest in Washington.

The competition did not emerge as the alternative service Parler was quickly banned by Apple, Google and Amazon, and its survival is under question. The market quickly realized that Twitter’s leading position in its market segment was not under threat, and traders rushed to buy shares after the sell-off.

While Twitter’s shares are at multi-year highs, the company’s stock is well below the all-time high levels near $75 which were reached soon after the company’s IPO. If Twitter presents are viable strategy in the subscription space, investors’ interest will increase, and the stock will have a good chance to continue the current upside move. If the shares are also supported by a strong quarterly report, Twitter will gain solid upside momentum.

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