With the Dow Jones Industrial Average trading at record highs, Twitter Inc (NYSE:TWTR) is near all-time lows. TWTR stock opened for trading Aug. 3 at $16.22, against a 52-week, and all-time low of $14.12, reached in April.
Even at that, traders are paying almost 5 times sales to own this dog, which delivered yet-another loss for the June quarter and is on track to record its lowest full-year revenue since 2014.
Journalists who are seeing their careers vanish might say, cry me a river. Twitter stock at least has a business model, promoted tweets and aggregated data to back it up. The problem is that business model isn’t working any better than your local paper’s business model.
This year, TWTR dumped the Fabric software unit that made it interesting to investors, co-founder Ev Williams said he’s selling-out and rumors of its purchase by Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) or Facebook Inc (NASDAQ:FB) have died down.
TWTR Stock: In More Trouble Than Trump
The story Twitter wanted to promote in its second-quarter report was a small operating profit, 12 cents per share, on better-than-expected revenue of $574 million, while analysts had expected just 5 cents per share of operating income and revenue of $548 million. Note, however, that an operating profit is not the same as net income. The net loss was still 16 cents per share.
Worse for TWTR stock, monthly average users were flat at 328 million, and the growth rate in daily active users continued to slow, to 12%. The stock had been rising going into earnings, and the report erased all those gains.
While InvestorPlace contributor Joseph Hargett had been bullish going into earnings, a close look at the report caused other InvestorPlace writers to run the other way.