Twitter Stocks Still Plummets After Q1 Report Shows Higher Revenue But Lower User Growth than Analyst Estimates
By Ma Evelyn Castino Quilas | May 1, 2014 3:33 PM EST
Twitter stocks continue to plummet for two consecutive days after the company's first quarter report on Tuesday that revealed higher revenue of $250 million but lower user growth of 255 million compared with the analyst estimates of $241.47 million revenue and 257 million user growth.
The San Francisco based micro-blogging company now experiences all-time low status on Wednesday with stocks down by almost over 20 percent overnight after investors got disappointed with the lighter than expected report of the monthly users growth. The company made a slight rebound on Thursday but stocks remains down by almost 9 percent.
In an article from CNN, Stifel Nicolaus analyst Jordan Rohan mentioned in his letter to clients: "Twitter needed a perfect quarter, both financially and operationally, in order to put an end to the recent share pressure."
Twitter CEO Dick Costolo's statements during the release of Twitter first quarter report had not provided comfort to the dismayed investors. He stated: "We had a very strong first quarter. Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth. We also continue to rapidly increase our reach and scale. With the integration of MoPub, we now reach more than 1 billion iOS and Android users each month, making us one of the largest in-app mobile ad exchanges in the world and the only one at scale to offer native in-app advertising."
The company had a non-GAAP net income of $183 thousand and with $0.23 earnings per share. Revenues generated by the company from advertisement per thousand timeline views were at $1.44 showing an increase by 96 percent Year Over Year (YoY). Timeline views of the company increased by 15 percent YoY which was at 157 billion.
A large chunk of the company's monthly active users (MAUs) came from mobile MAUs which was at 78 percent of the total with figures at 198 million.
Looks like Twitter's hope of becoming the next Facebook will not happen soon despite the micro blogging company's edge over the social media in the recent semi-annual survey of Piper conducted on April this year.
To contact the editor, e-mail:
Most Popular Slideshows
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- Pope Francis: World War III Has Started On Piecemeal
- After Win Over Maidana, Mayweather Says He Is Prepared To Negotiate A Fight With Pacquiao
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
Join the Conversation
- Global Air Travel Alert: Air France Pilots Stage Labour Strike
- West Africa Ebola Epidemic To Last 12-18 Months More
- Pope Francis Blasted For Defying Catholic Doctrine, Marries 20 Couples Who Have Cohabited And Had Children In No Else But St Peter's Basilica
- Venezuelans Using Made-in-China Silicones Because Of Breast Implant Shortage
- Google Release Roundup: Nexus 5 2014, Nexus 6, Nexus 8 and Android L Killer Features
- Samsung Attacks iPhone 6 Plus Through New Galaxy Note 4 Commercial: Apple Claims Imitating Galaxy Note Phablets
- Pregnant Kate Middleton May Call Off Malta Trip Due To Sickness: Royal Couple Will Move To Anmer Hall Residence
- iPhone 6 And IPhone 6 Plus Sold Out, New Stocks To Arrive In October
- Moto G (Gen 2) vs. Xiaomi Redmi 1S—Specifications, Features And Price Showdown
- Nexus 6, 8 Release Dates Imminent as Moto X Pre-Order Begins & Nexus 7 Deals Ramp Up
- iPhone 6 And iPhone 6 Plus Shipping Has Begun, Expected To Reach Customers’ Doorstep On Sept 19 Launch Date