(Bloomberg Opinion) — Users continue to flock to Twitter Inc.’s social media platform, but that doesn’t necessarily make it any better of an investment for shareholders.
Early Thursday, Twitter posted strong audience growth for its second quarter. Its key user metric — average monetizable daily active usage — came in at 186 million for the three months ended in June, up 34% from a year earlier and handily beating the 174 million average analyst estimate. Second-quarter revenue, however, was below Wall Street expectations at $683 million, a decline of 19% from a year earlier.
The stock got an early boost on the user numbers, which were, admittedly, stellar. But the drivers that helped boost its audience may be temporary. The company itself cited the extraordinary historic nature of the June quarter in its investor letter: “The year-over-year increase in mDAU was primarily driven by external factors, such as continued shelter-in-place