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Twitter’s disappointing user growth

Marcio Jose Sanchez / AP

Twitter shares took a beating Thursday morning after the company reported it had failed to increase its user growth. The results from its second quarter earnings report:

  • Revenue, missed: $574 million in revenue vs. $536.7 Thomas Reuters estimates
  • Earnings per share, beat: 12 cents per share, beating 17 cents per share Thomas Reuters estimates.
  • Advertising revenue, dropped 8%: $489 million vs. $535 million last year (8% year over year drop
  • Monthly Active Users, missed: 328 million vs. 329 million StreetAccount Reuters estimates

Our thought bubble: If you are on the internet and not growing, you are dying.

Why it matters: Twitter has struggled to woo investors since its IPO in 2013. Wall Street have been wary of its ability to monetize its massive direct-to-consume, mobile audience, something most legacy media and tech companies are striving for. The company has been rolling out sophisticated new live video and static ads units (see this one from Adam Schiff), that have been very effective (total ad engagements increased 95% year-over-year this quarter) but investors still aren't confident that their ad business is scalable, especially when the company's user base has basically plateaued.

What analyst are saying: "You have zero user growth versus Facebook reporting 70 million new users [Wednesday]" Aegis Capital internet analyst Victor Anthony told CNBC. "It's not a recipe for a stock you want to buy."

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Kellyanne Conway addresses the 2020 Republican National Convention. Photo: Nicholas Kamm/AFP via Getty Images

Kellyanne Conway has seen power exercised as a pollster, campaign manager and senior counselor to President Trump. Now that his term in office has concluded, she shared her thoughts with Axios.

Why it matters: If there's a currency in this town, it's power, so we've asked several former Washington power brokers to share their best advice as a new administration and new Congress settle in.

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GOP holdouts press on with plans to crush Cheney

Screenshot of emails to a member of Congress from individuals who signed an Americans for Limited Government petition against Rep. Liz Cheney. Photo obtained by Axios

Pro-Trump holdouts in the House are forging ahead with an uphill campaign to oust Rep. Liz Cheney as head of the chamber's Republican caucus even though Minority Leader Kevin McCarthy told them to back down.

Why it matters: What happens next will be a test of McCarthy's party control and the sincerity of his opposition to the movement. Cheney (R-Wyo.) is seen as a potential leadership rival to the California Republican.

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Democrats aim to punish House GOP for Capitol riot

Speaker Nancy Pelosi passes through a newly installed metal detector at the House floor entrance Thursday. Photo: Drew Angerer/Getty Images

House Democrats plan to take advantage of corporate efforts to cut funding for Republicans who opposed certifying the 2020 election results, with a plan to target vulnerable members in the pivotal 2022 midterms for their role in the Jan. 6 violence.

Why it matters: It's unclear whether the Democrats' strategy will manifest itself in ads or earned media in the targeted races or just be a stunt to raise money for themselves. But the Capitol violence will be central to the party's messaging as it seeks to maintain its narrow majorities in Congress.

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