Twitter shares tumble as user growth slows to a snail's pace

Shawn Knight

TechSpot Staff
Staff member

Twitter on Tuesday turned in another disappointing earnings report that sent shares plummeting in after-hours trading.

For the period ending September 30, Twitter reported revenue of $569.2 million. That’s 58 percent higher than the $361 million it generated last year and a bit higher than the $559.6 million that analysts were expecting. Even still, the company recorded a loss of $131.7 million, or $0.20 per share – an improvement over the $175.5 million, or $0.29 per share, it posted in the year-ago period.

Twitter said its total active monthly user count grew by just four million users during the past three months, from 316 million to 320 million. WhatsApp, in comparison, surpassed the 900 million actively monthly user milestone last month. Instagram, meanwhile, now has over 400 million users – many of which are outside of the US – while social networking king Facebook enjoys a whopping 1.5 billion active monthly users. Facebook added 49 million new active monthly users during its second quarter.

All things considered, it’s clear that recently reappointed CEO Jack Dorsey has his work cut out for him. The executive said his company continues to see “meaningful progress” across three areas of focus – ensuring more disciplined execution, simplifying its services and better communicating the value of its platform.

Earlier this month, Dorsey revealed plans to cut more than 330 jobs as part of an internal restructuring effort. Just last week, he apologized to developers and vowed to “reset” the tarnished relationship created under the previous regime and also announced plans to give a third of his Twitter stock to his employees.

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cliffordcooley

TS Redneck
Another example of how we as a society encourage leaches. There is nothing worse than a share holder that has nothing to do with a company and then drops them as soon as things slow down. That's the equivalent of pissing on people that make your fortune.
 
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yRaz

Nigerian Prince
Another example of how we as a society encourage leaches. There is nothing worse than a share holder that has nothing to do with a company and then drops them as soon as things slow down. That's the equivalent of pissing on people that make your fortune.
this is what you call a "correction". The shares were over valued at that price and many people were just along for the ride. Right now I think twitter shares are undervalued which will be fallowed by another correction. I'd say twitter is a pretty good buy right now
 
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mrtraver

TS Evangelist
TBH, I never "got" Twitter. I used it some before I got a smartphone, but Facebook takes care of my needs now. Literally the only thing I still use Twitter for is to receive notifications from my kids' school. What am I missing out on?? (Seriously, I want suggestions! :) )
 
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Kenrick

TS Evangelist
TBH, I never "got" Twitter. I used it some before I got a smartphone, but Facebook takes care of my needs now. Literally the only thing I still use Twitter for is to receive notifications from my kids' school. What am I missing out on?? (Seriously, I want suggestions! :) )
well you can receive tweets from Kanye West and then change the world
 

p51d007

TS Evangelist
TBH, I never "got" Twitter. I used it some before I got a smartphone, but Facebook takes care of my needs now. Literally the only thing I still use Twitter for is to receive notifications from my kids' school. What am I missing out on?? (Seriously, I want suggestions! :) )
From the commercial...you can order pizza via twitter.
 
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p51d007

TS Evangelist
I never got the whole "twitter revolution" anyway. Today, all it is good for is stirring up trouble.
A tweet goes out about something (black lives matter) or similar, and by the time it is vetted, and proved
untrue, it won't matter, the useful *****s will have burned down a town, or worse.