Twitter rides mobile wave in shifting Internet landscape
Published on Feb 4, 2014 10:58 PM
SAN FRANCISCO (REUTERS) - Twitter Inc, whose stock has surged by 150 per cent since it went public in November, has a lot to live up to when it reports quarterly earnings for the first time on Wednesday.
A growing number of naysayers warn that Twitter's stock is greatly overpriced, and that even mediocre inaugural results could deflate its soaring valuation, now several times that of its closest social media peer, Facebook Inc.
But a clutch of earnings from the giants of the Internet sector last week suggest the company's mobile advertising business model is rooted in solid - and fertile - ground.
Facebook last week posted its strongest quarterly revenue growth in two years, even though 53 per cent of its advertising revenue came from mobile users, once its Achilles heel. Facebook shares shot up 14 per cent the day after the news.
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