What has Twitter Inc (NYSE:TWTR) learned and did in the recent months to post better-than-expected performance in the second quarter of the year? According to Paul Sweeney and Debra Aho Williamson in a discussion with Cory Johnson on Bloomberg’s Taking Stock, it has reaccelerated its growth and has locked on to real-time marketing.
According to Sweeney who works at Bloomberg intelligence, Twitter Inc (NYSE:TWTR) is now getting better numbers in fundamentals and key metrics. Furthermore, he said that the social network is proving its long-term story.
“This was a good quarter for Twitter and I think the stock gets kind of a relief rally in the after-market [trading]here. I think investors finally are getting a little bit of comfort that this is in fact going to be a good, solid long-term growth story. There really was concern about user growth [and]about engagement and what we saw this quarter was not only a beat on the top line and bottom line, but it was really coming from the fundamentals and these key metrics like monthly active users and mobile users. We’re starting to see that grow and accelerate and keep that growth rate strong. More importantly, we saw the company put out some third quarter guidance that was better than the street was looking for and put out a formal guidance for 2014 that was better than the original guidance. I think investors are getting a little bit of comfort that the reaccelerated growth, if you will, has some legs to it,” he explained.
Meanwhile, according to eMarketer social media analyst Debra Aho Williamson, Twitter Inc (NYSE:TWTR) has a hold in the market for advertising in the moment.
“Twitter has done a great job this quarter – better than everybody expected. It’s really taking flight. I think that Twitter really has a lock on what we would call advertising in the moment or real-time marketing. A lot of marketers are really interested in figuring out how to reach people when they are in the moment…Twitter is really one of the only platforms where marketers can consistently do something like [reaching out to people who are engaged with an event at the moment]and I think that has been really powerful. Another thing that I think has been really powerful for Twitter is the fact that marketers who are TV advertisers can use technology from Twitter to sync up advertising from Twitter that is timed to when their ads are appearing on television. That really gives Twitter a good in to the TV marketers and to the TV advertisers which we all know is a huge business that all of these social media companies really want to get more of,” she explained.
Williamson was also asked Twitter Inc (NYSE:TWTR) has figured out mobile advertising which she said the company has already figured out.
Watch the video about Twitter Inc (NYSE:TWTR) below where Sweeney also discussed the company’s stock price.