Shareholders Waiting for Twitter (TWTR) Catalyst Left Holding the Bag
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Twitter (NYSE: TWTR) reported another dreadful quarter as far as financial and user metrics go, but even investors holding out hope for an upcoming catalyst were left holding the bag.
Make no mistake about it, while many investors are waiting for the eventual turn of key metrics, Twitter's stock is loaded with retail and institutional investors holding out hope for one of these three catalysts to get the stock moving. Today, they got no reprieve:
1. Dorsey gives up the CEO job at Square to focus Twitter or vice versa
Negative... Dorsey was asked a direct question from Youssef Squali at Cantor Fitzgerald about this. Answering, Dorsey said the recent flattening of the organizational structure at Twitter "gives me a lot of confidence, I can continue to focus on the most meaningful things at both companies, and that we have the right prioritization in front of us."
2. Trump bump
Negative... Despite hope that President Trump is driving strong growth, given he uses Twitter as his platform of choice to talk directly to the U.S. people, Dorsey indicated that he is not moving the needle much.
"As it relates to impressions growth... the magnitude of the impressions of the platform is so large, it'd be very hard for an event, or a single person to drive sustained growth in impressions growth," Dorsey commented. "All of that said, having the world's leaders on our platform, talking about global issues, people being passionately expressing their points of view, that's all positive for Twitter, and that's what we're focused on."
3. A sale of the company
Negative... This is the ultimate catalyst. Despite the company being in play in recent months with Salesforce and Disney bowing out and Google not participating, there was not one mention or one question about it on the call.
Shares of Twitter are down 10.4% intra-day.
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