What a Mess: Shares of $TWTR Plunge After Posting Wretched Earnings Results

Twitter isn’t even remotely close to being an American company. With 4x as many monthly active users abroad, it truly is a global platform for news and information. The only problem with the company is they’ve got no idea how to monetize it.

More to that end, growth is at a standstill. User growth is barely moving, even with all of those fake accounts. Revenues are decreasing — because the model blows.

I’ve already detailed my experience with their ad platform and it was horrible.

Some libtards are pressing for Jack Dorsey to actually ban President Trump from Twitter. That’s the only positive thing the company has going for it. I was glad to see they’re not even thinking about doing such a ridiculous and petulant thing.

In their conference call, they said Trump’s use of platform shows it’s power. They did not see, however, a direct benefit from Presidemtial tweets.

See the problem with them, like so many other emotional people, is their inability to think outside the box. Instead of of pandering to their retarded leftist base, they should embrace the President’s affinity for their platform and work with him to set up a live QnA or something they can promote. They should be doing this with all celebrities and permit anyone to upgrade their accounts to host live webinars or QnAs, password protected if needed.

Instead, they wallow in their idiotic ideologies and suffer.

Details below, via Briefing.

Twitter beats by $0.04, misses on revs; issues disappointing guidance

Reports Q4 (Dec) earnings of $0.16 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.12; revenues rose 0.9% year/year to $717 mln vs the $738.74 mln Capital IQ Consensus.

Advertising revenue totaled $638 million, down slightly year-over-year.

Mobile advertising revenue was 89% of total advertising revenue.

Data licensing and other revenue totaled $79 million, an increase of 14% year-over-year.

US revenue totaled $440 million, a decrease of 5% year-over-year.

International revenue totaled $277 million, an increase of 12% year-over-year.

Total ad engagements were up 151% year-over-year.
Cost per engagement (CPE) was down 60% year-over-year.

Q4 adjusted EBITDA of $215 million, up 12% year-over-year, representing an adjusted EBITDA margin of 30%, versus 27% in 2015.

Average monthly active users (MAUs) were 319 million for Q4, up 4% year-over-year and compared to 317 million in the previous quarter.

Average US MAUs were 67 million for Q4, up 3% year-over-year and flat compared to 67 million in the previous quarter.

Average international MAUs were 252 million for Q4, up 5% year-over-year and compared to 250 million in the previous quarter.
Mobile MAUs represented 83% of total MAUs.

DAU grew 11% year-over-year, an acceleration from 7% in Q3’16, 5% in Q2’16, and 3% in Q1’16.

Expect advertising revenue growth to continue to lag that of audience growth in 2017. Advertising revenue growth may be further impacted by escalating competition for digital ad spending and the re-evaluation of our revenue product feature portfolio, which could result in the de-emphasis of certain product features.

Q1
Adjusted EBITDA to be between $75 million and $95 million, well below expectations;

Adjusted EBITDA margin to be between 17% and 17.5%
SBC to be between $125 and $135 million.

FY17
Total non-GAAP expenses to be flat to down 5%, compared to full year 2016;

SBC to be down 15% to 20%, compared to full year 2016;
Capital expenditures to be between $300 and $400 million.

2017 Focus- easier on-boarding and easier ways to tweet; starting to see this in the results; recently launched explore tab which makes it easier to organize.

Product changes and marketing big driver for DAU; changes making and relaunching; Seeing strong growth in Q1 for DAUs.
Made a big bet in Live Streaming in 2016.

Majority of revenue remains branded advertising; Will continue to invest in this area.

Why unable to monetize?:
Looked at a number of different ways of analyzing the business; organizational impact as well as fundamental trends;
Reorganization salesforce at the end of Q3; Performance of those accounts that changed hands are consolidated versus performance of those spending to standpoint that were not affected and there is no difference in the trend so there’s no quantitative analysis that shows had an organizational impact due to the restructuring; Doesn’t appear to have any impact our revenue performance or outlook that said similar to the fourth quarter

Implied range of revenue that’s quite wide and there’s a number changing factors; continue to focus on EBITDA and EBITDA margin as opposed to a narrow range of revenue.

Haven’t been able to leverage the more attractive ROI potential of acceleration and the double-digit growth in inventory.

Audience and engagement growth were sitting down to branded advertiser showing them the positive trends taking them to the increased inventory the higher scale the greater growth all of which can lead to better ROI; will get better allocation over the next 6 to 12 months; in addition to that trend it’s important to understand that in the quarter did see audience and engagement growth were sitting down to branded advertiser showing them the positive trends taking them to the increased inventory

Did see an acceleration in the competitive environment for branded advertising since mid-January.

Taking a step back and looking at simplify product and putting resources behind those products think have the greatest probability of success that can deliver the best long-term growth potential and that leverage competitive advantages; may cause them to be deemphasized products increasing revenue
NFL exceeded revenue and profitability expectations for TWTR and partners.

Trump supporters have waited, impatiently, for some of his platform promises to get enacted by GOP shilled congress. Apparently, we’re gonna get the long awaited tax cuts soon.

“Lowering the overall tax burden on American business is big league … that’s coming along very well. We’re way ahead of schedule, I believe. And we’re going to announce something I would say over the next two or three weeks that will be phenomenal in terms of tax,” Trump said.

On that news, markets went ape to the upside — hitting new record highs.

Related: My $CLF is ripping mustaches off today. As promised, I purchased an oil stock — details are in Exodus.

This is what you call living in a vacuum.

Herald van der Linde from HSBC believes the market’s hesitance to go up, uninterrupted of any pullbacks, is due to Donald Trump’s twitter account’s revelations. For the life of me, I cannot grasp how this high level retard deduced that annualized returns of 25-30% on the $SPY equates to a market struggling to find its footing. More to that point, the market is higher by more than 10% since election night — with numerous sectors (financials, commodities) higher by 30% during that time frame.

Donald Trump’s honeymoon with investors may come to a premature end as his frequent Twitter outbursts help kill off the initial burst of euphoria, according to Herald Van Der Linde, HSBC’s head of equity strategy for the Asia-Pacific region.

While leaders such as Japan’s Prime Minister Shinzo Abe and India’s Narendra Modi enjoyed comparatively lengthy periods of market strength after taking office, the U.S. optimism that welcomed Trump’s surprise victory in November shows signs of fizzling less than a month into his four-year term.

“You’re seeing the internal workings of the White House on Twitter, so you’re seeing the struggles going on in their Twitter feed,” Van Der Linde said in an interview at HSBC’s Hong Kong office. “When somebody comes in with a new agenda and the country seems to be moving in a new direction, that excites markets. With the Trump administration, we’re going to have a reality check and it might come sooner than you think.”

Investors are now adopting a wait-and-see approach to give Trump a chance to follow through on his post-election hype, but that will also be short-lived, Van Der Linde said. The HSBC strategist is one of a number of investors and analysts to question if the post-election rally was too fast and furious.

Classic care trolling.

The Trump rally was never sensical, as it was predicated upon the hopes and dreams of vast amounts of fiscal stimulus bills being passed by the GOP shilling congress — as well as regulatory reform and a commitment to lowering taxes. In spite of the fact that Trump’s policies threaten to menace China into a deleterious trade war, investors have given him the benefit of the doubt and have perpetuated a massive short squeeze for the ages.

With the S&P higher by ~3% for the year, and massive gains found in a sundry of sectors (nuclear +39%, aluminum +33%, gold +27%, copper +18%, hospitals +14%, semis +12%, autos +8% etc.) Mr. Herald Van Der Linde should open his eyes to the fact that markets have done nothing but exude optimism since the beginning of the year and pullbacks are a normal occurrence in any market — especially during one’s that shoot higher on the specter of an economic renaissance that is nothing more than a working theory.

God damn it. When was the last time I bought the oil sector? I recall an era in iBC history whence I walked upon these halls an oil man — completely devoid of human emotions — solely interested in mercenary profit. Alas, those days are coming back to iBC in short order — prompted by the infallible laws of mathematics.

According to Exodus, $XLE is oversold on all algorithms (3,6 and 12 month time frames). In addition to that, seasonality beckons.

Lastly and somewhat importantly, the sector has traded down 5% over the past month — providing bargain shoppers and math lovers alike with a supreme opportunity to delve into the dark tarry pits of BIG oil — drilling and injecting chemicals into the water supplies everywhere at your black heart’s behest.

BEHOLD, the trifecta of buy signals.

How do we play this to maximum effect? Stay tuned for tomorrow’s Fly Buy, fucked faces. In the meantime, here are some of the larger capped names in the drillers. Notice on the far right their YTD returns. We want to bargain shop here, not chase sloppy seconds.

Once I purchase of the aforementioned names, my exposure to this market will be in the magnitude of 140% long.

I remember when Wholefoods just hit the tri-state area and organic food was something of a novelty. I’d drive 45 min to the nearest store, just for the honor of spending $500 on overpriced balsamic vinegar and other first world delicacies.

Over the years, I’ve spent at least $500,000 on fucking groceries at that God forsaken store. Their prices keep going higher and the quality keeps sinking.

Whole Foods used to employ hipster junkies, now they have retards manning the cold cuts section, fucking up simple orders. All of the decent employees hate the company and tell me it’s a political hell hole — all the while prices go up.

Over the past 3 years, competition has truly offered a comparable alternative to Whole Foods and sales have begun to slumber.

They just reported earnings and they sucked, plus they warned.

Whole Foods prelim Q1 $0.39 vs $0.39 Capital IQ Consensus Estimate; revs $4.92 bln vs $4.98 bln Capital IQ Consensus Estimate

Whole Foods sees FY17 $1.33 vs $1.44 Capital IQ Consensus Estimate; cuts sales

Very seriously, I hope this company burns it hell. For the first time in over a decade, I’ve decided to boycott those motherfuckers by shopping anywhere but Whole Foods. I can no longer justify paying $50 for a single King crab leg, even though it’s gluten free and was fed nothing but grass until it was caught in the wild and killed, holistically.

That being said, I haven’t given up on organic foods, even if it is a scam. It makes me feeeeeel better. Ergo, it’s worth paying more — just not Whole Foods types more. Those fucking bastards.

About a month ago,  I was lamenting over the rise in US borrowing costs, via the treasury market, and the lift in the dollar. Both occurrences boded poorly for a potential fiscal stimulus package and US trade abroad.

Since then, markets have settled down and things have materially improved.

Dare I say, things are looking perfect right now, with commodity prices buoyant, treasury yields receding and the dollar sinking versus its foreign counterparts. All the while, markets have risen to the tune of 3% — permitting a true sense of optimism to gracefully dilute the dreary news flow of an otherwise very divided nation.

US 10yr is down to 2.34% from 2.56%. It was, however, 1.75% before the election.

Watch Zinc. In my opinion, it’s more important than copper now, since it’s a vital component in galvanizing steel — readily used in infrastructure projects.

My favorite plays with zinc exposure are $HBM, $TECK and $VEDL.

Chelsea Clinton’s husband was a hedge fund manager, until today. Marc Mezvinky’s Eaglevale lp, after years of rancid performance, has decided to close up shop and return their investors money back to them, one of which includes Goldman’s Lloyd Blankfein.

The fund had been reeling ever since its retarded bet on Greece, which caused their Greek opportunity fund to draw down 48% a few years ago.

Since then, Marc was, allegedly, using his powerful inlaws to further his schemes — abusing ties with the Clinton Foundation to raise assets.

In all, Eaglevale had nearly $400m in assets. Naturally, Eaglevale had offices in NYC, but enjoyed the tax exempt status of the Cayman Islands.

I read some scandalous leaks from deep within the crevasses of the Trump White House, some very alarming.

According to Huffpo and NYT, Trump actually walks around the White House at night in a fucking robe. Can you believe this guy? Literally Hitler. Also, while in this so called robe, he watches news…too much of it. God damn it, what’s next, reading books?

One of the biggest revelations is his displeasure with Air Force One’s hand towels. They’re too hard. Actually, I can’t blame him for that. No one likes hard hand towels, not even liberals.

Lastly, and the biggest shocker of them all, he doesn’t like to read long monotonous briefings. He prefers condensed versions, drafted in bullet points — an obvious sign of mental illness.

Nice work Huffpo/NYT

Moving on, speaking to a room filled with Sherrifs this morning, Trump updated them on the wall, which Mexico will be paying for, saying ‘the wall is being designed right now.’

President Trump: The wall is getting designed right now…pic.twitter.com/rTHHRmUuXX

— Breaking911 (@Breaking911) February 8, 2017

Senator Sessions will be sworn in tomorrow, on national pizza day.

Think
About
That.

The memes write themselves. Ever feel like we’re living in a scripted world, or one that is cosmically opposed to anything the elite want? As hard as they try to stump Trump, the wins keep piling up.

Speaking of which, base metals are forklifting higher this morning. You may proceed with your Trump trade plans, as they’re likely to get a jolt higher during today’s session.

Top picks: $TECK, $CLF, $UEC, $VEDL

She violated RULE 19. As such, she must shut up and remove herself from the filibuster. The Gods have graced the republitards this evening — proffering blessings of an unimaginable consequence. Thanks to the rule that were violated by Sen. Warren, none of them have to sit through her refuse and might instead go out for a late night cocktail or maybe a slice of pizza over at Comet ping pong.

What’s with democrats and rules?

Under the Senate’s “Rule 19,” senators are not allowed to “directly or indirectly, by any form of words impute to another Senator or to other Senators any conduct or motive unworthy or unbecoming a Senator.”

Not tired of winning yet.