Is Twitter Stock a Buy? | The Motley Fool

The social-media company’s stock dropped after a messy Q3 report. Key Points Twitter’s mixed Q3 report disappointed investors. Its advertising business remains healthy, but expenses are rising. Twitter could struggle to hit its ambitious 2023 targets. Twitter’s (NYSE:TWTR) stock tumbled 11% on Oct. 27 after the social-media company posted a mixed third-quarter earnings report. Revenue rose 37% year over year to $1.28 billion, which matched Wall Street’s estimates. But it also posted a net loss of $537 million, or $0.67 per share, which missed expectations by $0.85 and dropped sharply from its net income of $29 million, or $0.04 per share, a year earlier. That loss was caused by a one-time litigation charge of $766 million to settle a class-action lawsuit, which was initially filed in 2016 by investors who accused the company of using misleading engagement metrics. Image source: Getty Images. For the fourth quarter, Twitter expects its revenue to rise 16%-24%, which matches expectations for 22% growth. However, that forecast still includes its revenues from MoPub, the mobile advertising network it plans to sell to AppLovin in the first quarter of 2022. It expects its operating income to turn positive again in the fourth quarter but still decline…
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