What To Watch For In Twitter’s Q4 Earnings

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Twitter (NYSE: TWTR ) reports its Q4 earnings on February 7. In addition to the management austerity around weeding out fake user profiles, Twitter could benefit from a zero-sum game emanating out of any potential weakness at Facebook.

We currently have a price estimate of $30 per share for Twitter, which is slightly below the current market price. Our interactive dashboard on Twitter’s Price Estimate  outlines our forecasts and estimates for the company. You can modify any of the key drivers to visualize the impact of changes on its valuation.

While Q3 had surprised the markets, Q4 will be watched closely to ensure that the last quarter was not just a flash in the pan. MAU and DAU growth notwithstanding, the markets are likely to be more interested in the company’s growth plans to capture any ad budgets moving away from Facebook.

Furthermore, as Twitter is increasingly becoming the medium of choice for consuming news, with many important upcoming elections, it will become even more important for the company to discuss its plans to ensure containing the spread of fake news.

While the markets may be willing to discount user growth in favor of user base health, ARPU growth and commentary around it is likely to be a key metric being watched. Twitter’s view on how pricing is likely to trend in 2019 and beyond will also be interesting to hear.

We will be keenly looking out for signs of market share win and additional use cases, if any.

Do not agree with our forecast? Create your own price forecast for Twitter by changing the base inputs (blue dots) on our interactive dashboard .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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