Morning Beat: Twitter Inc (TWTR), Facebook Inc (FB), and Apple Inc. (AAPL)
Twitter Inc (NYSE:TWTR) reported mixed quarterly results that seem to have spooked investors sending the stock plunging 13.6%, to lows of $15.34 a share. The giant social network says its revenue was up 36% to $594.5 million. Analysts were expecting revenues of $607.8 million.
Struggles in grabbing new users all but made it impossible for the company to report any substantial growth in revenues. Twitter Inc (NYSE:TWTR) says its user base grew to 310 million active users, a slight improvement from 305 million as of the fourth quarter.
A net loss of $79.7 million for the quarter was on the other hand an improvement from a loss of 162.4 million posted last year same quarter.
Facebook Inc (NASDAQ:FB) may after all have to redesign its security certificates, as it emerges hackers are using them to dupe users on the network. Security researchers have raised the red flag over an increased number of phishing campaigns all linked to the security certificates.
According to Net craft security researchers, hackers are using Facebook’s Transport Security Layer to launch phishing attacks. Given that most of the requests appear to be coming from Facebook Page Verification form, unsuspecting users may have already handed over their accounts credentials.
Using Facebook Inc (NASDAQ:FB)’s two-step verification process should shield any one from such attacks.
Apple Inc. (NASDAQ:AAPL) has for the first time in 13 years posted a decline in iPhone sales. The company says it shipped 51.2 million for the three months ending March 31, down from 61.2 million units shipped last year same quarter.
Sales in China, which is Apple Inc. (NASDAQ:AAPL)’s second most important market was down by more than a quarter. The company has since issued a disappointing forecast for the quarter further arousing concerns over the level of saturation in the smartphone business.
Slowing iPhone sales has not gone well with investors, seen by a massive selloff of the stock that sent it below the $100 mark for the first time since February.
Ant Financial raising $4.5 billion in a recent round of funding continues to evoke reactions in the investment community. The company has a profit sharing agreement with Alibaba Group Holding Ltd (NYSE:BABA). It has to be seen, what will be the outcome of the ongoing partnership given that Ant Financial is planning to go public.
Alibaba Group Holding Ltd (NYSE:BABA) has three choices to make ahead of the much-awaited Ant Financial IPO. The e-commerce giant will have to choose between continuing its profit-sharing agreement, or receive a one-time payment for the same. A third option involves taking a 33% in the company.
China investment laws could, however, complicate the matter given that they restrict foreign institutions from owning more than 20% in Chinese financial institutions. Given that Alibaba is listed in New York, it could be interpreted as an international company.
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