CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Twitter gains as platform reaches record daily users

By Robert Davis

23:00, 26 October 2021

Twitter app on a smartphone
Twitter app on a smartphone - Photo: Shutterstock

Shares of social media giant Twitter were up more than 3% to $61.43 (£44.62) during after-hours trading on Tuesday after the company reported increasing its daily users in its fiscal Q3 earnings report.

Over the last six months, the shares have lost nearly 7% in value, though they remain up nearly 13% on the year.

Earnings details

Ahead of the earnings release, investors were eager to see how Twitter would respond to the Facebook saga on Capitol Hill and Apple changing some of its privacy settings.

According to the company’s earnings statement, neither event seemed to have a big impact.

Twitter’s total users increased to a record-high 211 million, representing a 13% spike from 2020.

At the same time, the company brought in $1.28bn in revenue in Q3, a 37% increase from last year.

Advertising revenue totalled $1.1bn, an increase of 41% when compared to Q3 2020.

Three analysts at MarketBeat estimated Twitter would post revenues of $1.28bn and EPS of $0.05 during Q3.

Twitter also posted a net loss of $537m, driven primarily by a more than $800m settlement the company paid out during the quarter. This translated to a diluted EPS loss of $0.67.

Jack Dorsey, Twitter’s CEO, said he is “proud” of the company’s Q3 results.

We’re improving personalisation, facilitating conversation, delivering relevant news, and finding new ways to help people get paid on Twitter,” Dorsey said in a press release.

MoPub sale

Twitter also provided more information about its sale of MoPub to ad-tech company AppLovin earlier this month.

The deal is expected to close in Q1 2022 and the internal teams associated with the transition are expected to begin work soon thereafter. However, Twitter put on a caveat that “it will take time for their work to deliver results.”


178.58 Price
-0.250% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 0.05


225.35 Price
+0.460% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 0.08


53.30 Price
+1.390% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 0.15


383.54 Price
-0.800% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 0.18

Because of this, Twitter does not anticipate recouping the total revenue associated with the sale next year, which the company estimates to be between $200m and $250m.


Despite these changes, Twitter still anticipates bringing in more than $7.5bn in revenue next fiscal year and increasing its market share by approximately $150bn.

In Q4, Twitter expects its total revenue to be between $1.5bn and $1.6bn with a stock-based compensation of approximately $175m.  

The company also expects its revenue to increase faster than its expenses even though the company expects to build a new data centre next year that will make up approximately 20% of its expenses.

Ned Segal, Twitter’s CFO, said the company’s performance is a sign that its focus is paying off.

“We continued to drive increased value for our advertisers thanks to revenue product innovation, including progress on our brand and direct response offerings, strong sales execution, and a broad increase in advertiser demand,” Segal said.

Read more: Is it socially responsible to invest in social media?

The difference between stocks and CFDs:

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading