Twitter Inc. (NYSE:TWTR) is set to report its earnings this week awaiting to see its impact, considering Facebook Inc. (NASDAQ:FB) posted stellar results last week. The first half of the year has not entirely gone well for Twitter amidst increasing concerns over user growth which continues to slow down. Facebook Inc. (NASDAQ:FB), on the other hand, continues to register substantial growth margins both on the user base segment and its advertisement platform.
Jim Cramer on CNBC has also expressed his reservation about Twitter Inc. (NYSE:TWTR)’s expectations heading into its earnings report. Cramer believes that Twitter could be problematic this week at the back of solid results reported by Facebook last week. Twitter according to the analysts is set to suffer a great deal in the market, as a result, of being compared to Facebook Inc. (NASDAQ:FB).
“I know I got a ton of you interested in this Twitter Inc. (NYSE:TWTR). I think this one could be very problematic because Facebook Inc. (NASDAQ:FB) delivered such a great number, just this week. I think that people on Twitter should be worried they should be worried that Twitter could suffer by comparison,” said Cramer
Cramer advises on waiting before buying Twitter Inc. (NYSE:TWTR)’s stock, until it drops below the $38 margin that is currently trading at. Cramer remains Bearish on Twitter on the fact that it is 40% down this year. Twitter is set to report its earnings awaiting to see the impact of the just concluded World cup Bonanza on its revenue, especially on the advertisement segment.
“Frankly, I would not recommend buying Twitter until it drops back to the low thirties from the $38 it is now. Until then, you have a Facebook Inc. (NASDAQ:FB) why do you need Twitter Inc. (NYSE:TWTR),” said Cramer.
Twitter Inc. (NYSE:TWTR) prospects with investors could improve if it were able to show that it offered the best avenue for Users and Advertisers on the just concluded World Cup event. Many investors would wish to hear that the slowing user growth is just a transition period that would pass sooner than later. If Twitter Inc. (NYSE:TWTR)’s World Cup numbers prove to be unexciting, then it could enforce the notion that the company’s growth metrics is limited when compared to those of Facebook Inc. (NASDAQ:FB).