Why Twitter Got Crushed Yesterday

Twitter beat expectations on the top and bottom lines in its earnings report this week, but the market was looking at something entirely different.

Feb 7, 2014 at 7:03PM

Despite delivering a beat in its earnings report both in revenue and adjusted earnings per share, Twitter (NYSE:TWTR) shares fell off a cliff yesterday, down by 24%. In this video from Friday's edition of Tech Teardown, Motley Fool tech and telecom analyst Evan Niu discusses Twitter and its biggest problems: user growth, and user engagement.

The investing narrative for Twitter bulls has been the idea that this company is growing extremely rapidly, and could potentially even catch Facebook (NASDAQ:FB) one day in terms of the number of users it has and, therefore, the number of eyes advertisers could reach through the platform. But with only 9 million new monthly active users this quarter, bumping the total number up to 241 million vs. Facebook's 1.2 billion, investors are concerned that the company is hitting a ceiling here. Twitter also released some concerning data regarding its user engagement, with timeline views per user down to a six-quarter low.

In the video, Evan explores why, like the early days of Facebook's reporting when it discussed "like" metrics, Twitters reporting approach of timeline views per user might one day be replaced by more meaningful metrics; but he also looks at why Twitter may not have as much mainstream appeal as Facebook does, and what, if anything, the company can do to change that.

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Erin Kennedy has no position in any stocks mentioned. Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool recommends Facebook and Twitter. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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