Mark Holder
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Mark Holder in Out Fox The $treet,

Twitter: Q216 Quick Takeaway

After the close Twitter (TWTR) posted mixed results sending the stock down nearly 10%. Per

  • Q2 EPS of $0.13 beats by $0.03
  • Revenue of $601.96M (+19.8% Y/Y)
  • 3M MAUs added in Q2 (1M more than expected)
  • 313M total MAUs, 66M in United States (+1% Y/Y) and 247M globally (+4% Y/Y)
  • Q3 projected revenue between $590M-$610M vs. consensus of $678M

The forecasted revenue numbers are very disappointing, but the key to any social network long term is the user base. The ability to reinvigorate growth in MAUs is what will attract advertisers and return the stock to prominence. At 313 million MAUs, Twitter has now grown 8 million users from the lows. Remember that this number is before all of the live streaming deals including the NFL contract kick in during Q3. 

Use the weakness to load up on Twitter. 

Disclosure: Long TWTR