It’s surprising that Twitter, in spite of gaining great financial success this year would have its stock price plummet by 20% in its third quarter. According to the Q3 financial reports released by Twitter, the downturn continued as of Oct. 31st with a drop of 14% in pre market trading.
This drop is shocking to most analysts given that Twitter’s reported revenue reached over $936 million USD with advertizing revenue increasing by 15% annually. This alongside the average of daily active users generating income rising (mDAU) by 1 million in comparison since last quarter’s 187 million daily active users.
CEO of Twitter, Jack Dorsey had this to say about the mDAU statistics: CEO Jack Dorsey voiced support for Twitter’s mDAU (monetizable daily active usage/user) metrics. “We have grown our daily audience by 42 million in the last year as people all around the world come to Twitter to find out about the topics and events they care about most. I’m pleased mDAU grew 29% year over year to 187 million, driven by global conversation around current events and product improvements,” Dorsey said. “We’re helping people find trusted sources of information by better organizing and surfacing the topics and interests that bring people to Twitter.”
Prior to Q3 Twitter’s shares have reached a 5 year high, increasing above 63% in 2020
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