Twitter Crushes Earnings, and Trump Takes Credit

April 23, 2019

By Carlo Versano

Twitter ($TWTR) reported first-quarter earnings Tuesday that crushed expectations, sending shares higher by more than 10 percent in early trading.

It's the last quarter Twitter says it will break out monthly-active-users (MAUs), a metric that has long been a standard for social-media analysts. Instead, Twitter plans to report what it calls MDAUs, or "monetizable daily active users." MDAUs came in at 134 million for the quarter, compared to 126 million in Q4.

"You have to give Twitter its due," said Scott Galloway, professor of marketing at NYU Stern. "It continues to find ways to monetize its users."

Galloway, author of the upcoming book "The Algebra of Happiness," told Cheddar after the earnings report that Twitter's gangbusters quarter bodes well for other social networking companies like Facebook ($FB) and Snap ($SNAP) showing progress in wringing out more revenues from advertisers.

"We continue to see what is one of the greatest shifts in capital in history," Galloway said. "From offline marketing to online marketing."

Soon after Twitter earnings hit the tape, the company's most famous user opined and appeared to give himself some credit for Twitter's success. President Trump tweeted that he was the best thing to happen to Twitter, even though "they don't treat me well as a Republican."

In a sense, Galloway said, the president is correct. That the most powerful person in the world uses the platform as his primary mode of communication lends it an air of legitimacy and visibility as part of the "daily dialogue" that it didn't have before ー even if it may not work the other way around.

"Donald Trump has been much better for Twitter than Twitter has been for Donald Trump," Galloway said.

For full interview click here.