|Bid||1,659.60 x 800|
|Ask||1,664.90 x 1100|
|Day's range||1,522.24 - 1,593.60|
|52-week range||1,013.54 - 1,733.18|
|Beta (5Y monthly)||1.11|
|PE ratio (TTM)||34.45|
|Forward dividend & yield||N/A (N/A)|
|1y target est||1,730.83|
Bill Gates says misinformation online could result in fewer people being vaccinated against the coronavirus.
(Bloomberg) -- Twitter Inc. said it added a million new daily users in the third quarter, far fewer than analysts estimated, dashing optimism that the social network would reap greater benefits from a return of live sports and the coming U.S. election. The stock plummeted 18% in extended trading.The company reported 187 million daily users at the end of the quarter, an increase of 29% from last year, but a paltry gain over the previous period. By comparison, Twitter added 20 million new users in the second quarter.Advertisers, however, flocked back to the San Francisco-based company in the third quarter, driving sales well above analysts’ estimates, in a sign the digital advertising business is returning following the outbreak of the global pandemic.Twitter is one of three internet companies under intense pressure from U.S. officials over their treatment of political content. Twitter Chief Executive Officer Jack Dorsey testified alongside the heads of Facebook Inc. and Google at a Senate panel on Wednesday. In the results Thursday, the company didn’t give a forecast for the holiday quarter but suggested that uncertainty around the election could impact the business.“It is hard to predict how advertiser behavior could change,” the company wrote in its shareholder letter. “In Q2, many brands slowed or paused spend in reaction to U.S. civil unrest, only to increase spend relatively quickly thereafter in an effort to catch up.”Twitter shares fell as low as $43.15 in late trading after closing at $52.43. The stock has gained 64% this year.There was some concern that Twitter’s business would be affected by a wide-ranging ad boycott in July, when a number of high-profile brand marketers pulled spending from social media companies over frustration with their content-moderation policies.Twitter, unlike Facebook, has long been dependent on live events and large brand advertisers but said in April it also needed to improve its direct-response ad product, which is typically more useful for e-commerce advertisers looking to drive immediate sales. At the time, Twitter executives called better execution on these kinds of ads a “top priority.”In the shareholder letter, Twitter said a new version of these types of ads is now delayed until 2021 so the company “can integrate expected new industry-standard mobile privacy requirements.” Ned Segal, the chief financial officer, confirmed that the delay is partly due to expected updates related to Apple Inc.’s new iOS 14 software. Some changes to Apple’s software will affect how online advertisers can track people around the web, but those have been postponed until early next year. Twitter is waiting to see how they are implemented, Segal said.Twitter didn’t issue guidance for the holiday quarter, but on a conference call with investors executives were asked repeatedly for some kind of update. Segal said October “has a similar setup as September,” a suggestion that the period was starting on a positive note.He did warn that November would be harder to predict due to uncertainty surrounding the U.S. election.“When advertisers do choose to pause or slow down because there is a more important discussion happening on our service, when they come back they often spend through that budget that they had set aside for Twitter because their objectives and their reach goals haven’t changed,” Segal said.Sales increased 14% to $936 million in the period ended Sept. 30, Twitter reported on Thursday. It was the biggest jump since the second quarter of 2019. Analysts projected a 5% decline to $780.5 million, according to data compiled by Bloomberg. In the letter to shareholders, Twitter cited the return of live events, such as professional sports, and product improvements as key drivers.Twitter said in July that it was exploring additional business lines, including subscriptions and “managing pay walls,” but those efforts weren’t highlighted in the shareholder letter.(Updates with shares in the first paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Alphabet Inc. returned to growth in the third quarter after a decline in the previous period, fueled by digital advertising that has rebounded along with the American economy. The shares rose about 7% in extended trading in New York.The Google parent reported third-quarter revenue, minus the cost of distribution deals for its search engine, rose 15% to $38 billion. While that was slower than the pace of growth a year ago, it was a stark change from the the 2% drop in the second quarter and better than what analysts were expecting. YouTube, the fastest-growing part of Google’s ad business, brought in $5 billion, 32% more than last year.About 90% of Google’s revenue stems from advertising, much of it linked to search results. That business ground to a halt in the spring, as the pandemic decimated some of its biggest clients: travel and tourism companies. But as lockdowns wore on and people adjusted to spending more time at home, e-commerce has boomed and people have spent more time watching YouTube, helping the search giant business get going again. The U.S. economy also showed signs of recovery, notching record growth in the third quarter.“Overall we’re pleased with the degree to which advertisers have re-activated their budgets,” Chief Financial Officer Ruth Porat said on a conference call. YouTube’s focus on direct-response e-commerce ads has also helped boost revenue, she said.The pickup in digital advertising also helped Facebook Inc., Snap Inc. and Pinterest Inc., all of which reported solid revenue growth in the quarter.Google’s positive results weren’t confined to advertising. The company’s cloud business pulled in $3.4 billion in the quarter, up 45% from the same period last year. Analysts from Canaccord Genuity had estimated growth of 42%. Millions of people working from home due to the pandemic has sped up the “digital transformation” of the workplace, a trend that drives more demand for Google’s products, Porat said. A drop in capital spending helped push Google’s margins and profit up too. Net income jumped 59% to $11.2 billion and earnings per share of $16.40 beat analysts’ estimates for $11.42.Even as Alphabet stages a financial comeback, the company is facing its most serious regulatory challenge yet: an antitrust lawsuit by the U.S. Department of Justice, which accuses the company of abusing its dominant position in online search. Google has issued a lengthy rebuttal to the suit, which it calls “deeply flawed.” One of the government’s arguments takes aim at Google’s agreements with Apple Inc. to prioritize its search engine in the iPhone maker’s products. Google pays an estimated $8 billion to $12 billion for the privilege, and as a result the DOJ said nearly half of Google’s search traffic in 2019 came from Apple products.The third-quarter results showed that those payments, to Apple and other partners, continue to rise. Traffic acquisition costs increased 9% in the third quarter to $8.2 billion.Google has packed the top of search results with advertising in recent years, increasing its ability to profit from users’ hunts for information.(Updates with comments from CFO in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.