SHARES in social network Twitter tanked nearly 10 per cent in after-hours trading after the company posted disappointing results.
The site made a net loss of $132m (£78m) in the first quarter of 2014 it said last night. Revenue for the first three months of the year hit $250m however, with $226m made through advertising. Mobile views accounted for a larger share of advertising revenue than was expected.
Active monthly users rose by 5.8 per cent to 255m but this failed to satisfy investors and the stock fell over 10 per cent after-hours to below its original initial public offering low of $38.80 in November.
Overall, the stock broke even against an expectation of a three per cent loss, but investors are becoming increasingly wary of the social network and its failure to live up to initial expectations.
Analyst and economist Max Wolff of Citizen VC said Twitter is yet to find a way to maximise advertising revenue without turning its audience off. Wolff added that Twitter stock is “reasonably priced” at below $40 per share, where it currently sits.