Twitter shares soar by 35 per cent

By admin topicIcon Social Media

Twitter shares rose by 35 per cent during after-hours trading yesterday after the San Francisco-based social network revealed its quarterly earnings report for March to June.

This is despite the fact that the company openly reported a net loss of $145 million (£85 million) - which is over three times more than this time last year.

The micro-blogging giant announced that its number of monthly active users (MAUs) has gone up by 24 per cent, to 271 million, while the number of monthly mobile active users has reached 211 million.

Both of the above figures were much more positive than analysts had expected, and are believed to be a main cause of the strong surge in shares.

Twitter and the media recently

Twitter was lambasted last week for its current lack of diversity with regards to the gender and ethnicity of staff, after the company acknowledged in a blog post that its employee base is largely made up of white males and noted that this matter needs to be addressed.

Positivity going forward

Dick Costolo, CEO of Twitter, commented:

"Our strong financial and operating results for the second quarter show the continued momentum of our business... We remain focused on driving increased user growth and engagement."

Twitter has said that it expects revenue to be between $330 million and $340 million (£194 million and £200 million) for the next quarter, and to amass between $1.31 billion and $1.33 billion (£773 million and £785 million) for the full year.

Kleon West, business development director at theEword, has said: "The last few weeks have been interesting for social networks; Facebook's share price is at an all-time high thanks to its massive advertising revenues, while Twitter has experienced similar success, as its ad revenues have risen by 129 per cent year over year. 2014 may yet turn out to be a great year for both companies."