Listed companies have been reporting their results for the first quarter of the year. Social networks have been posting increased results due to increased online activities among users courtesy of the pandemic.
However, this seems not to be the case with widely used social network Twitter Inc. (TWTR). The company has reported its first quarter results in which it recorded a net income of $68 million or 8 cents per share. The company was expecting to record 14 cents per share in the quarter.
On the other side, its sector peers including Alphabet Inc. (GOOGL) and Facebook Inc. (FB) were reporting staggering performances for the first quarter ended March 31.
Analysts are now predicting that Twitter will have a very difficult time replicating the good results it posted last year in 2021. Senior analyst at Investing.com Haris Anwar, says as vaccination programs go on people may decide to seek alternative offline activities.
“The company’s (Twitter) weak future guidance suggests that repeating this performance will be extremely difficult,” said Anwar.
Following announcement of the first quarter results, share of the company plunged by 12%. Twitter has cautioned that the current second quarter might turn out worse than the first quarter and therefore, in return, 2021 will be weaker compared to 2020.