Social media stocks such as Facebook, Inc. (NASDAQ:FB) and Twitter, Inc. (NASDAQ:TWTR) have been all the rage in recent years for investors looking to get their hands on companies which have reshaped the way advertisers get through to their clientele. With a greater percentage of people now more engaged than ever with platforms such as Facebook and Twitter, the temptation to buy some Twitter stock at these depressed levels and hold for the long term may be too great to ignore for some.
This past week, Twitter reported a second profitable quarter in a row, leading some to believe the company has officially turned the corner in terms of figuring out its advertising model and helping companies reach a greater number of eyeballs at a lower average cost overall. I have always been impressed by Twitter’s potential, and while the company has taken some time to become profitable, it appears the company may be doing the right things to keep the company in the black, as per its recent earnings report.
Twitter has done a good job of increasing its daily average users at a faster rate than its monthly average users, which has translated into higher engagement, which has allowed the company to march forward with improvements in its ad revenue. Total revenue and advertising revenue grew just more than 20% since last year, driven in part by higher engagement but also by more interesting ad options for advertisers. While the company currently continues to trade at a premium, should shares of Twitter take another serious dip, I would recommend growth investors take a look at this name at these levels.
Invest wisely, my friends.
Tech Insider
