Twitter Results in Focus after Uneven FAANG Results

Markets now focused on the upcoming earnings report of Twitter Inc. on Thursday after FAANG stocks delivered divergent results.

For the fourth-quarter earnings, analysts expected the social media giant to post fourth-quarter earnings of $0.35 per share.

The projection reflects year-over-year growth of about 8.00% from $0.38 per share in the same period of the prior year.

They also anticipated the firm to post revenue growth of over 21.00% to $1.57 billion.

Meanwhile, Twitter expects revenue in the range of $1.50 billion to $1.60 billion in the fourth quarter of 2021.

Moreover, the market projected a GAAP operating income between $130.00 million and $180.00 million.

Then, the microblogging firm expected an increase in headcount and costs by 30.00% in 2021, focusing on engineering and products.

Twitter estimated total revenues to grow faster than expenses for the full year.

Last Wednesday, Facebook posted a disappointing earnings report, triggering a tech stock sell-off.

Consequently, social network operators Pinterest, Snap, and Twitter sharply declined.

Meanwhile, Amazon.com has topped market estimates with stellar results, benefiting from its investment in Rivian.

Since the start of the year, shares of Twitter have traded 15.52% or 6.62 points lower. The business also plummeted 38.08%, or 22.16 points from the past year.

Cathie Wood Dumps $142M Twitter Stock

Cathie Wood’s firm Ark Investment stepped up, selling $142.00 million worth of Twitter stocks days before its earnings release.

Subsequently, the flagship ARK Innovation ETF sold 3.66 million shares of Twitter on Monday.

Then, the ARK Next Generation Internet ETF dumped more than 280,000 shares.

Accordingly, the sale came after the mixed set of results from the social-media titans.

In addition, ARK has been selling Twitter shares since late December.

It sold more than 2.00 million shares of Twitter on February 3 and more than 700,000 shares on  February 2.

Still, the company stands with a market capitalization of $28.82 billion, with outstanding shares of 798.12 million.

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