Following yesterday’s earnings, Twitter shares (NYSE:TWTR)
have been tanking to an all-time low. This morning, shares opened at
$37.66, or 11.6 percent below yesterday’s closing price of $42.62.
Shortly after that, shares traded at $37.24, pushing the limit of
Twitter’s all-time low a bit further. Shares are now trading at $38.10.
Yet, the most surprising part is that the company actually beat Wall Street’s expectations, reporting $250 million
in revenue with earnings per share of $0.00 on a non-GAAP basis. Even
more impressive, the company’s revenue is up 119 percent year-over-year.
In other words, Twitter is still growing like crazy when it comes to
revenue. But this isn’t the magic number investors were looking for.
Twitter is still a bigger version of the startup that it used to be. The
company’s main focus right now is still growth, growth and growth.
And in this area, Twitter reported a 5.8 percent increase
in monthly active users in the three-month period. It’s better than Q4
growth, but today’s downturn proves that it is not enough to satisfy
investors.
As a reminder, Twitter opened at a price of around $45 when it went
public. It subsequently rose to its all-time high of $74 three weeks
after the IPO, before taking a couple of nosedives. The company currently has a market capitalization of around $22 billion.
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