The good news from Twitter’s latest earnings report is that its monthly active users increased by 2 million to 319 million accounts. Although forecasts were for 319.6 million. Just saying. Revenue also grew 10% to 717.2 million. However, that’s about all the good news there was, because the company missed estimates for revenues of $740.1 million, as ad revenues were lower, falling about .5% from last year’s $710 million to $638 million. In fact, Twitter experienced its slowest quarterly revenue growth since its IPO in 2013. To make matters infinitely worse, shares fell almost 12% on the news, and Twitter can’t afford to lose any more value from its shares. But CEO Jack Dorsey asked for patience, as the company he heads is making some investments into machine learning and figuring out exactly how to engage its advetisers. Seems like a prudent plan. But the bigger story is that President Trump’s tweeting did absolutely nothing for the company. Zero. Nil. Nada. Sure, the world got to see the kind of havoc that can be wreaked with just 140 characters. Unfortunately, that’s about all it did as his tweeting as Twitter reported that it actually experienced slower growth in the quarter that included the election. According to Twitter’s Chief Operating Officer, Anthony Noto, you can’t expect a “single person to drive sustained growth.” Meaning, Trump had no effect, President or not. The one bright spot – if you can call it that – is that Twitter earned 16 cents a share when estimates for 12 cents.
Mas tequila, por favor!
Mexico had its first IPO since President Trump won the election back in November. The lucky IPO was tequila maker Jose Cuervo. The world’s biggest tequila company raised $900 million, with shares priced toward the top of the range at 34 pesos. That translates to roughly $1.67 per share. It’s pesos. What did you expect? The IPO had actually been put on hold twice, thanks to Trump, because his anti-NAFTA ambitions and wall-building enthusiasm kept weakening the peso. Interestingly enough, unlike other products, demand for tequila is not based on price. However, its price could get higher if Trump gets his way by slapping some major tariffs on the lime-friendly beverage. A move like that could put a major dent into Jose Cuervo, which gets 64% of its’s $1.165 billion in sales from the United States and Canada. At least Jose Cuervo always had the luxury of enjoying strong dollar-base earnings. That’s got to count for something, right? Problem is that the new expected U.S. protectionist measures could end up hurting that $1.165 billion. But maybe not. Because, after all, this is tequila we’re talking about. So maybe Americans will be willing shell out a few extra dollars.
A Whole lotta nothing…
Whole Foods is looking anything but with its announcement that it will be closing nine stores. It’s the first time in almost a decade that the company had to resort to such measures as this quarter saw sales drop 2.4% when analysts only predicted a drop of 1.7%. Yikes. Whole Foods initially had a plan to open over 1,200 stores, but alas it was not meant to be as increasing competition and higher food prices led to the company’s sixth straight quarter of decreasing same store sales. The chain gained 39 cents per share which is was about what analysts expected, but as for its forecast, things aren’t exactly looking up. Whole Foods still operates 440 stores and believe it or not, six new stores are still expected to open, with another 80 stores in the planning stages.