Crunch day for Dorsey as ailing Twitter looks to avoid another results #fail

Twitter is facing what many see as its day of destiny today with investors poised to desert the ailing tech company if its results do not impress. When Twitter Inc reports results on Wednesday, a less than stellar showing could hammer the stock further as a broad selloff in the technology sector has made investors jittery. Twitter’s shares have lost more than two-thirds of their value in the past 12 months. Several tech stocks with lofty valuations have plunged in the past few days after dismal sales outlook from LinkedIn Corp and business-analytics company Tableau Software fuelled growth fears for the entire sector.

I think the problem is that in the current market any sign of a weak outlook will be quite harshly punished.

Atlantic Equities analyst James Cordwell

Investors want to see Chief Executive Jack Dorsey’s strategy to reignite growth in user numbers. Twitter reported an 11 per cent growth in active monthly users in the third quarter to 320 million, the slowest growth since the company went public in 2013. But one effort, Moments, which showcases Twitter’s best tweets and content, has failed to take off as expected, analysts have said. Twitter is also planning to reorder tweets to prioritize those it believes more users will want to see, BuzzFeed reported on Friday. Many users decried the reported plan, with the hashtag #RIPTwitter becoming the top trending U.S. item on Twitter on Saturday.

Why would you invest in something like a Twitter when Facebook is on a similar valuation with a stronger trajectory - that’s the kind of questions investors are asking.

James Cordwell

Jack Dorsey