Internet social media Twitter, the platform that lets you ‘Twit’ whatever you like such as where you are, how you feel, what you had on your sandwich etc has reported soared in shares. The reason for the shares increasing is that Twitter had a rapid rise in user numbers.
Hitting over 271 million users, this is an increase of up to 24% year-on-year according to Twitter’s quarterly report. However it is not all good news as Twitter quarterly loss had widened to $145 million from a $42m loss in the same period a year ago.
Even though this lost would scare of the bravest investors, the stocks of Twitter increased to more than 30%. Advertising has been a new feature incorporated into Twitter and that has showed that the income now has increased and is up to $277million.
The advertisements served up on mobile phones equaled to 81% of that revenue, however when put against the expenses and stock compensation it crashes down to a mini profit of $15 million (I wouldn’t say no to that though). Adjusted results – which exclude certain expenses and stock compensation – showed a small profit of $15m (£8.8m).