Twitterbug blues

Ad glitch dims profit, squashes stock

Twitter shares plummeted more than 21 percent Thursday after the social network posted worse-than-expected quarterly results driven in part by an ongoing tech glitch that has clipped its ability to target users with ads.

Twitter said it has been having problems implementing a feature that allows advertisers to see how effective their campaigns are — prompting some advertisers to pull back spending, lowering revenue.

“Unfortunately, we had some missteps,” Twitter CEO Jack Dorsey said on a call with analysts.

The bug took Wall Street by surprise, especially as it threatens to continue to hurt ad spending ahead of the busy holiday season.

Goldman Sachs slashed its price target onTwitter shares to $34 from $52, citing a “lack of visibility” on when the glitch will be fixed.

“Not expecting a quick rebound in Twitter’s financials for at least a few quarters, as shortfall likely will carry into 2020,” said media-stock analyst Craig Huber of Huber

Research Partners.

Shares of the social messaging company — beloved by Tesla Chief Executive Elon Musk and President Trump alike — swooned almost 21 percent, to $30.74, in midday trading.

Although Twitter’s revenue rose 9 percent from a year earlier, it fell short of Wall Street expectations. Third-quarter profit came in at $37 million, or 5 cents a share, down from $790 million, or $1.02 in the year earlier quarter, which included a large tax benefit.

Twitter also said it’s been having problems with a feature that asks newusers if the Twitter app can use device settings to display relevant ads. Twitter has turned this feature off entirely.

“These issues were in our control and we will work to do better,” Chief Financial Officer Ned Segal said on the company’s earnings call.

He said that although the company is working on fixing the problems, “there isn’t remediation yet in place, and so the effects of that will continue into Q4.”