Morning Commentary: Twitter convertible bonds weaken as turnaround lags; Citrix rises on earnings

By Stephanie N. Rotondo

Phoenix, July 29 – Twitter Inc.’s convertible bonds were on the decline early Wednesday after management said its turnaround efforts would take more time.

“The stock caught a bid because of the earnings report,” a trader said, noting that the stock (Nasdaq: TWTR) had fallen over 10% by mid-morning.

As for the bonds, he saw the 0.25% convertible notes due 2019 trading with an 87 handle and the 1% notes due 2021 trading just north of 86.5.

In its earnings call late Tuesday, Twitter interim chief executive officer Jack Dorsey and chief financial officer Anthony Noto said the social media platform was struggling to sustain growth, attributing the troubles to the platform itself, as well as how it is marketed.

Despite the lack of growth, the company did see an increase in revenue per user and overall results came in better than expected.

In other earnings news, Citrix Systems Inc. was moving up after its numbers beat expectations.

A trader called the 0.5% convertible notes due 2019 up 3 points, trading in a 107 to 108 range.

The stock (Nasdaq: CTRX) was meantime up $5.95, or 8.54%, to $75.58 at mid-morning.

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