Twitter Inc. Stock Rises on Q4 Earnings as U.S. Stocks Plummet
Shares of Twitter Inc. (NYSE:TWTR) were up 17.5% at the bottom of the noon hour on February 8. The stock surged after Twitter released its fourth quarter and full-year results for 2017. This while U.S. stocks were being decimated by volatility once again. As of this writing, the Dow Jones Industrial Average had dropped 500 points.
Twitter reported a quarterly profit in Q4 for the first time since its public listing. Quarterly GAAP net income reached $91 million compared to a net loss of $167 million in the prior year. Fourth quarter revenue rose 2% to $732 million and adjusted EBITDA made up 42% of revenue at $308 million. Total annual revenue dropped 3% from 2016 to $2.4 billion.
In the first quarter of 2018 Twitter projects adjusted EBTIDA to be between $185 million and $205 million. For the full-year the company plans to see capital expenditures between $375 million and $450 million.
Twitter has been active in policy conduct on its platform in the wake of the 2016 election. Government officials pointed the finger at Twitter and other social media platforms for “enabling” foreign interference over the course of the election. In speaking to U.S. Congress, Twitter has vowed to be more vigilant in the future.
Twitter stock has now climbed 30% in 2017 and 67% year over year. The company is entering fiscal 2018 on its strongest note since its debut after recording its first profitable quarter.