Twitter shares are down more than 24% today following the release of the social media network's first quarterly earnings statement since its initial public offering.
Shares closed at $50.03. Shares had traded above $66 the day before.
Although the company reported earnings of $0.02 per share — above analysts' consensus estimate of a loss of $0.02 per share — and revenues came in at $242.7 million (also above expectations), investors are honing in on weak user growth.
Monthly active users were 241 million, up only 9 million from the previous quarter. In the U.S., Twitter grew its user base by only 1 million. Not only is the number of users growing at a slower pace, but the engagement of that user base is slacking off as well.
On the call, analysts raised questions over the number of users that try Twitter and decide they do not like it. CEO Dick Costolo said the company was experimenting with new methods of improving the user experience and making it easier for new users to sign up.
Today's drop sees shares trading at the lowest level since Dec. 12.
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