Social Media Companies to post financial results

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Social Media Companies to post financial results
27th October 2014

Headline London discuss fears that social media websites are stagnating and their value with it. 

Alex Lawson, business reporter for the Evening Standard, explains why the value of a company like Twitter isn't simply about the number of users on the site and why assessing its worth needs to account for more than a traditional reading of profit and loss. 

There is also talk of the Queen's first tweet and the way Facebook, Twitter and even Whatsapp have become valuable news sources and have even changed the way stories are reported, as was seen during the Oscar Pistorious trial. 

Twitter is today expected to reveal a rise in third quarter revenues to Wall Street. Alex Lawson discusses how the micro blogging giant has performed in the 12 months since last year’s flotation at $26 a share.
Twitter’s update to the market comes in a significant week for social media firms with Facebook and LinkedIn also due to update.

Twitter is forecast to post revenues of $365 million in the third quarter, up from $312 million in the second quarter, according to analysts at JP Morgan.

The site’s fortunes have been under the microscope amid fears its growth in new users had been stalling however a boost from this summer’s World Cup has improved its prospects.

JP Morgan expects LinkedIn to post third quarter revenue of $335 million, which would represent an increase of 41 per cent on last year.

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