Twit­ter Stock Plunges af­ter Rev­enue Misses Es­ti­mates

The Economic Times - - Around The World - YASMEEN ABUTALEB & NAROTTAM MEDHORA

Twit­ter­dis­ap­pointe­d­in­vestorsyet again with first-quar­ter re­sults that showed stag­nant rev­enue growth as the mi­croblog­ging ser­vice strug­gles to grab new users amid ef­forts to im­prove its com­pli­cated in­ter­face with sev­eral new fea­tures. Twit­ter shares plunged 13.6% to $15.34 in late trade on Tues­day af­ter re­port­ing low­erthan-ex­pected rev­enue, hurt by weaker-than-ex­pected spend­ing by­bi­gad­ver­tis­ers,and­pro­vidinga cur­rent-quar­ter rev­enue fore­cast well be­low an­a­lysts’ ex­pec­ta­tions.

Twit­ter’s user base grew mod­estly to 310 mil­lion monthly ac­tive users in the quar­ter ended March 31 from 305 mil­lion in the fourth quar­ter, above an­a­lysts’ ex­pec­ta­tions. But in­vestors were let down by the rev­enue miss since out­lin­ing a turn­around plan. “It’s ob­vi­ous Twit­ter is hav­ing trou­ble,” said Arvind Bha­tia, an­a­lyst with CRT Cap­i­tal.

On a call with an­a­lysts, ex­ec­u­tives said ad­ver­tis­ers held back spend­ing ahead of ma­jor events, in­clud­ing the Olympics. They also said users were spend­ing more time watch­ing and shar­ing video, but that ad­ver­tis­ers’ bud­gets had not yet shifted from legacy ad­ver­tis­ing prod­ucts.

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