Wall Street analysts have said Twitter will struggle to repeat the bumper 2020 that has been dominated by US political battles, civil unrest and the Corona crisis as people venture out after the launch of the vaccine, CNBC reported.
Lifting restrictions as people largely get vaccinated has seen a benefit for other digital advertising companies such as Facebook, Alphabet and Google, whose shares have soared after reporting huge results this week.
Not so, with Twitter, stocks plunged more than 12% last Friday after the social media company reported that first-quarter revenue and user numbers were mostly in line with analysts’ estimates and warned that the current quarter could be worse as it looks to weaker in 2021.
“The company’s weak future guidelines indicate that replication of this performance will be very difficult,” analysts said, as more people will be looking to engage in offline activities as the vaccine begins rolling out.
Although other tech companies have warned of a drop in the number of users this year, they remain optimistic about ad spending as marketers try to target consumers eager to spend and travel after locked inside for more than a year.