Twitter reported a rise in revenue for the three months to September but the pace of growth in active users was the slowest since it joined the stock market in 2013.
Twitter had 320 million average active monthly users, up from 316 million the previous quarter, below investor hopes.
The social networking site reported revenues of $569m, up 58% from $361m during the same period last year.
The company's shares fell 11% after the results announcement.
Revenues up, active users up, shares down.
(Score: 2, Insightful) by Anonymous Coward on Thursday October 29 2015, @09:23AM
Revenues up, active users up, shares down.
if you think that the price going down makes no sense, feel free to buy stock now that the price is low. if you were just making a point of it, then I guess stock buyers think the same way you do...
(Score: 2) by unzombied on Thursday October 29 2015, @09:27PM
That is the curious thing about growth stocks. This quarter is expected to be better than last quarter. Exponential growth is required. $10 last quarter needs to be $11 this quarter. $13 next quarter. No business can maintain this. Those that try make ever more drastic revenue-generating or risk-shifting choices, portray facts as different from what they are.
(Score: 2) by jmorris on Friday October 30 2015, @12:06AM
The reason for the investor unease is simple to understand. They suspect they have seen the end of user growth and are looking at the value of the company stabilizing as ad revenue also hits max. Put in perspective, dividing market cap by users gets about $60/user. Even if (a big IF) those were all really active and really real users then you still have to believe that advertising can bring in some reasonable fraction of that value annually to justify the cap. For sponsored tweets and other small potatoes advertising, no. Datamining the crap out of a userbase that large posting pretty much their entire life perhaps, eventually.