Twitter Stock Crashes 20% as User Growth Fizzles

quote:

---

Social media giant Twitter suffered a stock price crash of more than 21 percent in intraday trading today following the release of the company’s Q3 report. The company reported its slowest growth in years as many companies also bought less advertising on the platform at the same time.

Variety reports that despite beating Wall Street financial forecasts for the third quarter of 2020, Twitter’s poor user growth for the time period and an extremely uncertain advertising forecast for Q4 has caused the company’s stock to crash more than 20 percent.

Twitter reported a net gain of 1 million daily active users for Q3 totaling 187 million users worldwide, the slowest growth for the platform in three years. Analysts expected Twitter to report a gain of 10 million daily active users. The platform’s average daily users in the United States remained mostly flat in the third quarter at 36 million, Twiter reported a gain of 20 million daily users in the previous quarter.

Twitter reported revenue of $936 million in Q3, an increase of 14 percent year over year. This was an increase over analyst estimates of $775 million. Twitter’s net income was $29 million representing a net margin of 3 percent and diluted EPS of 4 cents. As of the time of the writing of this article, Twitter’s stock price is down by 21.11 percent to $41.36 per share.

---