Even amidst slowing growth, Twitter Inc (NYSE:TWTR) is having to refund advertisers owing to an ad-metric error. Should you sell out of TWTR stock? Or should you buy the dip?
Not long after Facebook Inc (NASDAQ:FB) reported a spate of miscalculations in key metrics, Twitter Inc (NYSE:TWTR) seems to have caught the ‘bug’. Late on 22nd December, Twitter announced that it had discovered technical errors which “affected some video ad campaigns” Unlike in Facebook’s case though, Twitter’s measurement errors will cost the company directly in Dollar terms.
Ellica / Shutterstock.com
Coming on the back of a long list of recent setbacks, the news comes at possibly the worst time for the micro-blogging site. More so because advertisers allocate sizeable advertising budgets for this time of the year, the holiday season, implying that the monetary impact is likely to be bigger than it would, at other times. And according to Business Insider, the error inflated video ad-metrics by as much as 35% in some cases.
A Costly Bug For Twitter?
According to the announcement by Twitter, the company has already communicated the discrepancy to advertisers. Quoting from the press release, the company said “Once we discovered the issue, we resolved it and communicated the impact to affected partners.” And according to Business Insider, which claims to have been informed by a “person familiar with the matter”, Twitter has even issued refunds to advertisers.
The micro-blogging platform has reportedly refunded advertisers to compensate the over-billing for video campaigns that ran on the platform between November 7 and December 12. Twitter seems confident that the mess up is a one-off glitch. In its press release, Twitter said, “Given this was a technical error, not a policy or definition issue, we are confident it has been resolved.”, referring to the bug in its Android app, which caused the error.
Also Read: One Simple Fix Can Make Twitter Inc Profitable (1)
However, the last thing Twitter needed right now, more so after Facebook’s fiasco, was an error that even slightly questioned the accuracy of its advertising metrics. And if there was anything that could be worse, it would have to be an error that hurt advertisers. The only real positive probably comes in the form of the prompt action that Twitter has taken to reassure advertisers. Even though these refunds will cost the company a piece of its waning advertising revenue, Twitter has made a bold decision that will inspire greater confidence in the management’s integrity, if not in its ad-metrics.
It’s worth noting at this point that Twitter does have its fair share of admirers. Take for instance, Larry Kim, a credible voice on digital advertising, who hails Twitter’s platform as “the best ad platform you’ll find – though ultimately it will depend on what you hope to accomplish.”
We may use your email to send marketing emails about our services. Click here to read our privacy policy.
Are The Wheels Falling Off?
However, from an investors point of view, there’s still too much that’s going wrong for Twitter Inc (NYSE:TWTR). Starting with the executive exodus that many see as a ‘brain drain’. In this context, a recent post on Barron’s raises an important point. Are these exits “Brain Drain or Restructuring?” Yet, irrespective of which of the two these exits point to, one thing is evident, Twitter has become a revolving door for executives. Far too many executives have left the company in recent times. Among other things, these exits also suggest that a buyout may not be as close as rumor mills have led us to believe in all of 2016. What’s more, these exits are very likely to hurt Twitter shareholders, potentially swaying the company from its path to profitability, and preventing it from curbing its notoriously generous stock-based compensation expenses.
Also Read: How These Constant Management Changes Are Likely To Hurt Twitter Shareholders (2)
The other worrying trend has been the drop off in engagement levels around its live streaming of NFL games. A recent post on TheStreet notes that last week’s game between the New York Giants and the Philadelphia Eagles generated “a mediocre 416,000 tweets, retweets and other activity on the social network, according to data from Nielsen released on Friday.” These figures represent a sharp drop from the 719,000 interactions generated by “The New England Patriots’ 27-0 victory against the Houston Texans on Sept. 22″. In recent times, live video streaming has been a major source of hope for those who are betting on a turnaround. Viewed in that light, the numbers are a tad disappointing.
Twitter Buyout The Only Hope?
Everybody who’s followed Twitter Inc (NYSE:TWTR) over the last year or so knows that for every couple of non-buyout related news items about Twitter, there’s one buyout speculation lurking around the corner. Not surprisingly, the trend seems likely to continue in 2017. On 23 December, a day after Twitter reported its ad-measurement glitch, Rick Munarriz of The Motley Fool expressed his confidence in the possibility of a buyout in 2017. Munarriz has his “3 Reasons Why Somebody Will Buy Twitter in 2017“. And while he says “buyout chatter isn’t going to go away until it actually materializes, and it happening in 2017 makes too much sense now that nobody sees it coming.”, he also notes that “The social media giant’s CTO is leaving, and with it hopes of a quick buyout.”
It seems unlikely that a buyout will happen soon. And investors would do well to take a deeper look at the rationale behind buyout speculation, rather than taking every rumor at face value. After all, we have seen more than just a couple of rumors emerge in the last 12 months. However, as Shira Ovide of Bloomberg Gadfly puts it, “just because it doesn’t make sense doesn’t mean it won’t happen.” For investors with a risk appetite, TWTR stock could serve as a decent means to bet on a tech buyout. However, more conservative investors would do well to stay away from this stock for now.
Evaluating tech stocks, check out Amigobulls’ tech stock pick (3), which have beaten the NASDAQ by over 100%.
The article Twitter Inc Is Returning Money To Advertisers, Time To Sell TWTR Stock? originally appeared on amigobulls.com. Watch our analysis video on TWTR
Amigobulls.com – Watch, Analyze, Invest. Why spend hours putting together numbers you can get in minutes, in one simple video? Our ‘Robo Advisor’ videos give you every number that matters, in 1 minute. Find insightful articles with ideas on investing, top stock picks that outperform the markets, personalized portfolio analysis videos and a whole lot more. Amigobulls.com – Your Friend On Wall Street.
Subscribe to Insider Monkey's Free Daily Newsletter and Join 100K+ Readers
Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!
AI is eating the world—and the machines behind it are ravenous.
Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.
Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:
Where will all of that energy come from?
AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.
Even Sam Altman, the founder of OpenAI, issued a stark warning:
“The future of AI depends on an energy breakthrough.”
Elon Musk was even more blunt:
“AI will run out of electricity by next year.”
As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.
And that’s where the real opportunity lies…
One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.
As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.
The “Toll Booth” Operator of the AI Energy Boom
It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.
Trump has made it clear: Europe and U.S. allies must buy American LNG.
And our company sits in the toll booth—collecting fees on every drop exported.
But that’s not all…
As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.
AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.
While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.
AI needs energy. Energy needs infrastructure.
And infrastructure needs a builder with experience, scale, and execution.
This company has its finger in every pie—and Wall Street is just starting to notice.
Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.
While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…
This company is completely debt-free.
In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.
It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.
And here’s what the smart money has started whispering…
The Hedge Fund Secret That’s Starting to Leak Out
This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.
They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.
Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.
And that’s for a business tied to:
The AI infrastructure supercycle
The onshoring boom driven by Trump-era tariffs
A surge in U.S. LNG exports
And a unique footprint in nuclear energy—the future of clean, reliable power
You simply won’t find another AI and energy stock this cheap… with this much upside.
This isn’t a hype stock. It’s not riding on hope.
It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.
This is your chance to get in before the rockets take off!
Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.
AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.
The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.
As an investor, you want to be on the side of the winners, and AI is the winning ticket.
The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.
From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.
This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.
By investing in AI, you’re essentially backing the future.
The future is powered by artificial intelligence, and the time to invest is NOW.
Don’t be a spectator in this technological revolution.
Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.
This isn’t just about making money – it’s about being part of the future.
So, buckle up and get ready for the ride of your investment life!
Act Now and Unlock a Potential 100+% Return within 12 to 24 months.
We’re now offering month-to-month subscriptions with no commitments.
For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!
Here’s why this is a deal you can’t afford to pass up:
Access to our Detailed Report on our AI, Tariffs, and Nuclear Energy Stock with 100+% potential upside within 12 to 24 months
BONUS REPORT on our #1 AI-Robotics Stock with 10000% upside potential: Our in-depth report dives deep into our #1 AI/robotics stock’s groundbreaking technology and massive growth potential.
One New Issue of Our Premium Readership Newsletter: You will also receive one new issue per month and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
Bonus Content: Premium access to members-only fund manager video interviews
Ad-Free Browsing: Enjoy a month of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Price Guarantee: Your renewal rate will always remain the same as long as your subscription is active.
30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.
2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!
I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.
We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…
Should I put my money in Artificial Intelligence?
Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.
Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…
But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.
That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…
And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.
He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.
