Is Twitter Stock a Buy After a Strong Q4?

Following a brutal second quarter of 2020, when Twitter (NYSE: TWTR) reported a 19% year-over-year decrease in revenue, the social network bounced back in Q3. Revenue during the period increased 14% year over year, signaling that advertisers were reopening their wallets as the economy started to recover from a coronavirus-driven economic downturn earlier in the year.

The big question, however, was how sustainable this momentum was. At the time of Twitter's third-quarter earnings report, there was still significant uncertainty about COVID-19, the political environment during an election year, and the overall economy. This uncertainty is one reason Twitter didn't provide revenue guidance for its fourth quarter.

As it turns out, however, Q3 was the beginning of what would prove to be an acceleration in digital advertising -- a holiday-quarter trend investors have observed at other ad-supported tech companies, including Pinterest and Alphabet.

Source Fool.com