Home
Social networking
Social networking News
Twitter shares hit lowest point since debut on weak user data

Twitter shares hit lowest point since debut on weak user data

By Agence France-Presse | Updated: 1 May 2014 16:56 IST

Twitter shares Wednesday finished at their lowest level since the company's November Wall Street debut after the company added fewer new users than expected.

Shares of the microblogging company sank 8.6 percent to $38.97 on the New York Stock Exchange, after earlier falling to $37.24.

Though still above its initial public offering price of $26, Twitter has lost nearly half its value since peaking at $73.31 in December 26.

Investors were troubled by data showing the company had 255 million active monthly users in March, below the 257 million projected by Wall Street, said BMO Capital Markets.

Twitter reported a $132.4 million loss for the quarter, or 23 cents per share.

Excluding $126 million in stock-based compensation, Twitter broke even, besting the three cents per share loss expected by analysts.

Revenues of $250.5 million exceeded the $241.4 million forecast by analysts.

Investors were "unforgiving" towards the low user numbers despite "solid" results otherwise, said Deutsche Bank in a note.

"The company continues to execute near-flawlessly around items in its control like revenue and expenses, but sentiment remains pinned on lackluster (user) growth," said Deutsche Bank.

BMO said it was lowering its target for Twitter to $42 from $53, citing the "reset in valuation" of growth-oriented tech stocks.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.