Breakfast Briefing: Twitter's record profit offset by user numbers

Shares of the platform were down more than 10% in pre-market trading.

Photo credit: Getty Images
Photo credit: Getty Images

Twitter beat analysts’ estimates on revenue and posted a record quarterly profit on Friday morning. BUT it missed projections for average monthly active users. The company blamed its weeding out of abusive behavior and fake accounts in part for the user number drop (Reuters). Shares of Twitter were down double digits in pre-market trading on Friday morning on the numbers (CNBC).

Twitter’s Jack Dorsey had a long day on Thursday -- though not as bad as fellow tech CEO Mark Zuckerberg, who lost $15 billion with Facebook’s share price in freefall (Fox Business). Dorsey spent much of Thursday fending off users upset about its supposed "conservative shadow ban," which President Donald Trump called "illegal" yesterday morning. Two company executives penned a blog post on Thursday asserting that the company does not downplay the accounts of right-leaning users.

One tech company that did not have a bad day on Thursday was Amazon, which posted a profit that doubled analyst expectations. Its advertising business was one of the drivers of the blockbuster earnings report, with revenue for the category (which contains some other businesses) at $2.2 billion, surpassing analysts’ predictions (Reuters).

The latest twist in Papa John’s vs. Papa John. Founder John Schnatter has sued Papa John’s for access to company documents, claiming its leadership is treating him in an "unexplained and heavy-handed way" (CNN Money). Weeks after acknowledging and apologizing for using a racial slur on a conference call, Schnatter also claimed in court documents that he was "falsely accused of making a racial slur" (Forbes).

Something to ponder over the weekend: CNN broke news on Thursday night that former Trump lawyer Michael Cohen is prepared to tell investigators that then-candidate Trump knew about a meeting between his son and Kremlin-connected Russians in 2016 (CNN). However, Cohen lawyer/spokesman Lanny Davis said the leak did not come from Cohen’s team (MSNBC). So who did leak the news? And to what end? Watch this space.

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