Twitter revenue drops further as user growth stalls

Twitter revenue drops further as user growth stalls”

One development last quarter was the introduction of Twitter Lite, which Twitter launched in April to reach more global users.

Facebook shares jumped 2.9 per cent to close at $170.44.

"Advertising revenue totaled $489 million, a decrease of 8% year-over-year,"the company adds in a letter to shareholders".

"Until Twitter can return to revenue growth, we expect advertisers to devote their ad budgets to platforms with better targeting, reach, and scale", Wedbush analyst Michael Pachter wrote in a pre-earnings note. We used a five-day range for dramatic effect.

Twitter is well aware that it needs to bring revenue growth in line with user growth.

The company has also had to contend with abusive activity on its platform. On that front, Twitter is doing well, and the number of engagements has increased 95 percent compared to the same period in 2016. Our DAU and social products performed better than expected, while there were down year-over-year, we're able to stem the decline and see an inflection point in those products as well.

The FactSet consensus was for 328.8 million. This implies limited upside for the company in terms of MAUs.

If and when Twitter hits a ceiling on how many people it can sell to advertisers, its advertising business is going to take [another] hit. Twitter will never be Facebook, and that is clearer than ever.

This time around, analysts expected Twitter to get at least 4 million more new users, despite it severely trailing rival Facebook, which has more than 2 billion users. On an annualized rate, that's $6 billion.

Shares of Twitter remain well below its IPO price of $26.

The company has also claimed it's finally made "significant" progress toward curbing abusive behavior, taking daily action on 10 times as many abusive accounts compared with past year. Now, current and would-be TWTR stock holders don't even have that hope to hold onto.

"We achieved greater operating efficiency".

The company blamed "lower seasonal benefits" as one contributing factor to its lack of MAU growth.

"I'm proud of the progress our community is making, and it comes with a responsibility to make sure we have the most positive impact on the world that we can", Zuckerberg continued.

I wrote this article myself, and it expresses my own opinions.

That stock dive is really a reevaluation of the company's future success, but it certainly doesn't help it in the short term.

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