Twitter is tumbling in pre-market trading, trading down 9.73% at $17.71 a share.
The social media company reported no monthly active user growth in the second quarter, which was one of the main metrics investors were looking for.
The company missed on user growth, but grew its revenue in the second quarter. Twitter reported revenue of $574 million, which beat Wall Street’s estimates of $537 million. Earnings per share also came in higher than expected at $0.12, compared to the $0.05 expected.
This was the eleventh quarter in a row that Twitter has exceeded earnings expectations.
In the first quarter, the company grew its monthly users by 9%, due in part to President Donald Trump’s avid use of the platform. The company has had trouble keeping up with rival platforms like Facebook, which recently hit 2 billion users.
Twitter recently went through a redesign of its web and mobile platforms in the second quarter in an attempt to narrow their focus on “live” content.
In a letter to shareholders accompanying earnings, Twitter said it was able to improve engagement thanks to timeline and notifications improvements. The letter attributes the stagnant user growth to “lower seasonal benefits and other factors.”
Twitter is up 8.09% this year.
- Markets Insider