Twitter stock sinks on user growth worries

Feb 6 2014, 12:32pm CST | by

Twitter stock sinks as 4th-quarter numbers trigger worries about slowing user growth

NEW YORK (AP) — Twitter's stock is sinking on worries that the short online messaging service is not popular enough.

Twitter Inc. had reported stronger-than-expected revenue and adjusted earnings in its fourth-quarter financial report Wednesday, its first as a publicly traded company.

But its user numbers signaled that growth is slowing. Twitter had 241 million users at the end of 2013. The company added just 9 million new monthly users in the fourth quarter, only 1 million of which came from the U.S. It was adding an average of 16 million new accounts in each of the first three quarters of the year.

Another closely watched metric, which measures how engaged users are with Twitter, declined during the quarter, further spooking investors. Twitter said its "timeline views," or how many times users refresh Twitter feeds, visit Twitter or look at search results, declined 7 percent from the previous quarter, to 148 billion from 159 billion.

CEO Dick Costolo sought to reassure analysts and investors during Wednesday's conference call, saying that changes Twitter made to the short messaging service during the fourth quarter are starting to pay off.

But the concerns remained. Sterne Agee analyst Arvind Bhatia cut his rating on Twitter's stock to "Underperform" from "Neutral" because of the slowing growth. He also said its stock is expensive compared to similar companies. He set a target price of $43 for Twitter's stock. This is still more expensive than Facebook and LinkedIn, based on expected revenue for the companies, the analyst wrote in a note to investors.

San Francisco-based Twitter's stock had soared following its November initial public offering, causing many analysts to call it too expensive. Having priced at $26 on the eve of its IPO, Twitter's stock peaked at $74.73 on Dec. 26.

The stock fell $13.88, or 21 percent, to $52.09 in midday trading on Thursday.

Other analysts are a bit more optimistic. Baird analyst Colin Sebastian increased his target price on Twitter's stock to $55 from $48 and said the company issued a "solid first report despite slower user growth." He said that Twitter's platform has "enormous potential" to attract advertisers.

Source: AP Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/31" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

blog comments powered by Disqus

Latest stories

Christopher H. Skinner, Senior Associate, Squire Sanders to Speak at Knowledge Group's Iranian Sanctions for 2014 and Beyond Live Webcast
New York, NY, April 24, 2014 --(PR.com)-- The Knowledge Group/The Knowledge Congress Live Webcast Series, the leading producer of regulatory focused webcasts, has announced today that Christopher H. Skinner, Senior...
 
 
Is The Future Of Television Social?
Today at the Brand Innovators’ Future of Television conference in New York, social media expert Ted Rubin will be sharing his perspective on the symbiotic relationship between TV and social media. In advance of his...
 
 
How To Screw Up On Social Media
Election 2012: Billionaires Speak Out On Social Media It’s not just the small companies and amateurs that make mistakes on social media. The fresh example of the NYPD and its attempt to get people to put pictures of...
 
 
London Live's Disastrous Ratings: 2,400 Watch Breakfast Show In City Of 9million
Last month, I wrote for Forbes.com about the imminent arrival in London of a media first – a local TV channel devoted solely to the UK’s capital city. I’d already been behind the scenes at the channel before its March...
 
 
 

Latest from the Network

Christopher H. Skinner, Senior Associate, Squire Sanders to Speak at Knowledge Group's Iranian Sanctions for 2014 and Beyond Live Webcast
New York, NY, April 24, 2014 --(PR.com)-- The Knowledge Group/The Knowledge Congress Live Webcast Series, the leading producer of regulatory focused webcasts, has announced today that Christopher H. Skinner, Senior...
Read more on Business Balla
 
Is The Future Of Television Social?
Today at the Brand Innovators’ Future of Television conference in New York, social media expert Ted Rubin will be sharing his perspective on the symbiotic relationship between TV and social media. In advance of his...
Read more on Business Balla
 
How To Screw Up On Social Media
Election 2012: Billionaires Speak Out On Social Media It’s not just the small companies and amateurs that make mistakes on social media. The fresh example of the NYPD and its attempt to get people to put pictures of...
Read more on Business Balla
 
London Live's Disastrous Ratings: 2,400 Watch Breakfast Show In City Of 9million
Last month, I wrote for Forbes.com about the imminent arrival in London of a media first – a local TV channel devoted solely to the UK’s capital city. I’d already been behind the scenes at the channel before its March...
Read more on Business Balla
 
Report: A Year After Bangladesh Disaster, Retailers Fail To Address Biggest Factory Risks
When Sarah Labowitz arrived in Bangladesh’s capital city of Dhaka this past February, it certainly didn’t look like nine months had passed since the factory collapse that claimed 1,129 lives. Outside the ruin of the...
Read more on Business Balla
 
How A Car-Crazy Entrepreneur Turned A Lifetime Passion Into A Lifetime Career
Elo has loved cars since he was a child and uses his mechanical and design skills to create unique vehicles. His customisations are second to none and clients from across the world seek him out to revitalise their...
Read more on Auto Balla
 
ITF Seniors World Championships at Polo Club Boca Raton
Boca Raton, FL, April 24, 2014 --(PR.com)-- Polo Club Boca Raton Hosts Opening Ceremonies of the ITF Seniors World Championships Margaret Court Cup (Women Age 45) and Dubler Cup (Men Age 45) Competition: April 21-26...
Read more on Sport Balla
 
Code for India Announces First Ever Simultaneous Hackathon Event in Bangalore and Mountain View
Mountain View, CA, April 24, 2014 --(PR.com)-- Engineers in US and India Team Come Together to Create Apps Making India More Resilient to Natural Disasters Code for India, the non-profit organization that inspires...
Read more on Business Balla
 
Tori Spelling: Sex life was 'very good'
Tori Spelling thought she had a "very, very good" sex life with Dean McDermott. The 'True Tori' star - who has children Liam, seven, Stella, five, Hattie, two, and Finn, 20 months, with her husband - was left stunned...
Read more on Celebrity Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla