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.