Twitter goes on sale and fly-in the Bag (+20%) Is next Google – the Journal

the Magdalene Room

Twitter flies on the Stock exchange on rumors of a sale is imminent yesterday on Wall Street the title of the social network of the bird cinquettante rose almost 20%. The boom is attached to a indiscretion published by Cnbc, according to which Twitter is in talks with a range of potential buyers to settle his accounts and explain to support the appeal which has in the network, where you become the social favorite by politicians and vips to spread a preview of the news that concern them. Here, then, that between the affected stand out Google but also other groups such as the big cloud computing Salesforce.com. Twitter, which for a year is again led by founder Jack Dorsey, was published last July 26, the quarterly data that were not well received by the market, mainly due to the loss from $ 107 million in the second quarter. The numbers that they literally collapse the title on Wall Street’s 10% in the after-market. Also on the revenue side, the outcome of 602 million dollars, even if in the growth of 20% compared to the same period of last year finished below the estimates of analysts who expected 606,8 millions of dollars. And the forecast for the third quarter were judged to be negative, remaining unsolved the problem of growth given that its users do not increase more in the Usa and they grow too much in the rest of the world.

Cnbc has, however, specified that the management at Twitter would be willing to sign an agreement for the sale, but that the same would not be equally imminent. At the moment the voices follow each other and next to the uncertainties to the closing of the agreement, others argue that the discussion is at an advanced stage and could go into the harbour before Christmas. The problems of Twitter, however, are known. In fact, while rivals like Instagram and Snapchat accelerate in collecting users and advertisers on the social networks, many have questioned the ability of Twitter to continue as the company stand alone. The tweeting social, in fact, is very much used, especially by known people that have many followers and arouse debate in the network, while it is judged to be frustrating from the users “common” that are not watched. And it is for this that the interest of the possible buyers would be directed more toward the data that Twitter can generate on the web, and on its role as a media company. On the other hand, only a few hours before the news about the negotiation for the sale the analysis of Rbc Capital Markets had cut the judgment to “underperform” indicating a risk of collapse of the 25% of the courses in stock because of the weakness of the revenue from the advertising.