Twitter resumes skid on disappointing quarterly report (Update)

February 11, 2016
Twitter, which has never earned a profit, said its loss in the past quarter narrowed to $90.2 million from $125 million a year e
Twitter, which has never earned a profit, said its loss in the past quarter narrowed to $90.2 million from $125 million a year earlier

Twitter shares skidded to all-time lows Thursday after its quarterly update failed to ease concerns that the messaging platform's growth initiatives are sputtering.

At the end of the official trading day on Wall Street, Twitter shares were down 4.47 percent to $14.31, extending their long decline and dropping to the lowest closing price since the social network group went public in 2013.

Shares regained a little ground in after-market trades.

The stock slump came a day after the San Francisco group said its base of monthly active users was 320 million at the end of last year, unchanged from the previous quarter. Excluding those who follow Twitter using text messaging, the user base declined slightly to 305 million from 307 million in the previous quarter.

Twitter, which has never earned a profit, said its loss in the past quarter narrowed to $90.2 million from $125 million a year earlier, but the market was focused more on its user growth.

Mark Mahaney at RBC Capital Markets was among analyst offering a guarded outlook.

"Organic revenue growth is clearly decelerating and all-important user metrics are showing no growth," he said in a note to clients. "We remain cautious, though current aggressive product moves are the right steps."

Factfile on Twitter.

Blake Harper at Topeka Capital Markets said he had hoped the return of co-founder Jack Dorsey as chief executive could boost growth but that now "it appears it will take more time."

Barclays analyst Paul Vogel noted: "We are encouraged by the pace of innovation following the leadership changes at Twitter over the last six months" but added that "there are still many issues with the service... that keep us on the sidelines."

On the earnings call, Dorsey said Twitter priorities for this year include making it more intuitive to use the service; being a leader in live-streaming video, and making it safer for people to freely express themselves at the platform.

He sought to reassure analysts that he had a system in place to make sure that both companies he runs, Twitter and mobile payments firm Square, get the attention they deserve.

Dorsey declined to detail what other tweaks might be in store for the service, but said there are a "number of broken windows" that needed to be fixed to boost user growth.

Explore further: Twitter woes deepen as user base fails to grow

Related Stories

Twitter woes deepen as user base fails to grow

February 11, 2016

Twitter's woes deepened Wednesday as the struggling messaging platform said it failed to add users in the past quarter, adding to concerns it is lagging in the fast-moving world of social networks.

Twitter user base stalls at 320 million

February 10, 2016

Twitter said Wednesday its growth stalled at the end of last year, holding at 320 million active monthly users, in a disappointing quarterly update for the struggling messaging platform.

Twitter knocked again on slow user growth

October 27, 2015

Twitter shares tumbled Tuesday after the struggling messaging platform reported only slim growth in its user base and a disappointing revenue outlook.

Recommended for you

Cryptocurrency rivals snap at Bitcoin's heels

January 14, 2018

Bitcoin may be the most famous cryptocurrency but, despite a dizzying rise, it's not the most lucrative one and far from alone in a universe that counts 1,400 rivals, and counting.

Top takeaways from Consumers Electronics Show

January 13, 2018

The 2018 Consumer Electronics Show, which concluded Friday in Las Vegas, drew some 4,000 exhibitors from dozens of countries and more than 170,000 attendees, showcased some of the latest from the technology world.

Finnish firm detects new Intel security flaw

January 12, 2018

A new security flaw has been found in Intel hardware which could enable hackers to access corporate laptops remotely, Finnish cybersecurity specialist F-Secure said on Friday.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.