Twitter shares collapse by 25pc as investors unfollow the stock
SHARES in Twitter plummeted as much as 25 per cent yesterday as disappointment in the social media firm’s user growth led investors to dump their stock.
On Wednesday Twitter reported its monthly active user base had grown to 241m during the three months to the end of December, an increase of only 3.8 per cent, sparking fears over Twitter’s long term profit making ability.
“We just need to make Twitter a better Twitter,” said chief executive Dick Costolo.
UBS analyst Eric Sheridan lowered his rating for Twitter from neutral to sell yesterday, saying that Twitter presented an initial post-IPO earnings report that “demonstrated strong advertising trends and margin expansion but negative trends in user growth and engagement.”
Investors agreed and Twitter’s share price closed down 24 per cent at $50.