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Home Enterprise

Twitter’s Unexpected User and Revenue Growth: Determining the Impact of Donald Trump

Paul Balo by Paul Balo
April 26, 2017
in Enterprise
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Today, Twitter revealed some rather romising earnings figures, primarily fueled by its consistent user growth. This gratifying news elicited a market response that saw the value of the microblogging site’s shares surge by a sturdy 10 percent.

Allow us to delve into the specifics of these promising statistics:

– EPS: An engaging 11 cents per share as opposed to the anticipated 1 cent per share
– Revenue: A convincing $548 million instead of the projected $511.9 million
– Monthly Active Users: A robust 328 million users outpacing the forecasted 321 million

The fourth consecutive quarterly escalation of Twitter’s monthly usage by 14 percent year on year calls for some analysis. While some market watchers speculate that the surge can be attributed to President Donald Trump’s relentless political tweets, Twitter CEO Jack Dorsey begs to differ. In his perspective, the growth is a direct manifestation of the site’s recent upgrades, which have brought forth a phenomenal overall user experience. Twitter, as an active combatant against online abuse, recently introduced measures to shield its users from such issues. They’ve also improved the way replies are handled, muting offensive responses, and this, as Dorsey ensures, is just the beginning.

Twitter CFO, Anthony Noto, echoed Dorsey’s sentiments, stating in a conversation with CNBC that the unexpected financial growth is not owed to any external factors but reflects Twitter’s conscious decision to phase out less effective ad formats. It should be noted that revenue this past quarter resulted from advertisement deals carried out between six to twelve months ago, a period since when the cost per engagement for advertisers has diminished significantly.

While the role of President Trump’s influence on Twitter’s user figures is yet to be ascertained, the CFO conjectures that there might be a correlation. While this contention remains unproven, the notion that significant events that unfold on the world stage may reverberate through social media channels, affecting user engagement, is an interesting one to ponder upon. This ongoing discussion continues to invite diverse perspectives, cementing the impact social media networks hold in contemporary discourse.

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Paul Balo

Paul Balo

Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.

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