Twitter earnings: Tweeps, ads and what’s next

How many new users are there in the Twittersphere? Inquiring minds want to know. Additional key things analysts and others will be watching this afternoon when Twitter reports its third-quarter results: Ad revenue. The outlook for the company’s new products.

Last quarter, Twitter said it had 271 million monthly active users. This quarter, analyst Rob Sanderson of MKM Partners reportedly believes Twitter added 18 million monthly average users. Other estimates reportedly range from 278 million to 284 million monthly active users. At least one analyst warned that last quarter’s rise in users may have been mostly attributable to the World Cup.

Analysts surveyed by FactSet estimate profit of 1 cent a share on sales of $351.5 million, compared with $168.6 million in revenue in the year-ago quarter, when Twitter posted a loss of $64.6 million.

The San Francisco company’s new products include video ads and the “buy” button, which some analysts find encouraging.

“I think there’s still a long runway ahead for this company, and if they can really start to show that this is not just a niche-y little social site… then I think there is going to be a big runway for the stock to move ahead,” Neil Doshi, managing director at CRT Capital Group, told CNBC’s “Squawk Box.”

Twitter, whose shares have declined about 20 percent this year, is down more than 2.5 percent to $48.55.


Photo of Twitter logo by Laura A. Oda/Bay Area News Group


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