Twitter will announce its second quarter 2014 earnings in a little over one hour’s time, after the closing bell in New York. I cover many of Wall Street’s expectations in this post here, but thought it would be interesting to see how Twitter’s stock performance has compared throughout the year to that of its great rival, Facebook.
The chart is below – note that on the day of its IPO, Twitter (TWTR) and Facebook (FB) were for the sake of comparison purposes “equal”. The chart plots what has happened to the respective stocks since then in percentile increments (plus or minus).
You’ll observe that Twitter tracked Facebook pretty closely for the first 2-3 months of trading, with both markets climbing to highs in late February/early March. However, since then it’s been a very different story – Twitter essentially plummeted on a 45 degree angle down to all-time trading lows (although, it should be noted, still above the $26 IPO price) while Facebook maintained its peaks and recently surpassed them (thanks to some cracking Q2 earnings). Twitter has recovered a whisker of late, but, as of right now, the split between the two is in Facebook’s favour by almost 80 percent.
Be interesting to see how this goes after Twitter’s earnings later today – as I’ve said in my report, I think anything less than 268 million active users will be disappointing.