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NEW YORK (CNNMoney)
Shares of Twitter (TWTR) tumbled to their lowest post-IPO price yet on Wednesday after the micro blogging site revealed results that only reinforce jitters about its user activity and engagement.
For example, Twitter said its monthly active user growth ticked up just 6%.
Even worse, the number of monthly active users viewing the service's "timeline" -- the list of tweets people write -- remained flat from the fourth quarter and down 8% year-over-year. That's not a good sign for Twitter's influence.
Many companies make up ground with strong international growth, but Twitter is struggling there as well. Non-U.S. user growth decelerated to 27% in the first quarter, down from 34% at the end of last year.
"Twitter needed a perfect quarter, both financially and operationally, in order to put an end to the recent share pressure," Stifel Nicolaus analyst Jordan Rohan wrote in a note to clients.
Related: Twitter sinks as user growth underwhelms
While Twitter's financial results were "impressive," the company's user data "remained mixed despite management's insistence that significant progress has been made," he wrote.
The San Francisco-based company's revenue soared 119% year-over-year to $250 million, but it broke even on profits. Investors disregarded the stronger-than-expected results, choosing instead to look under the hood.
Twitter plunged 11.6% to $37.65 Wednesday morning, sending the stock below its prior intraday trading low of $38.80 that was set in late November, shortly after the company went public.
The stock remains above its $26 IPO price, but keep in mind the first trade on November 7 shot the stock price up to $45.10. Shares are well off that price.
Related: #WOW! Twitter soars 73% in IPO
Investors who bought at Twitter's all-time high of $74.76 in late December are now staring at a painful loss of about 50%.
Twitter CEO Dick Costolo defended the results, saying the company continues to "rapidly increase our reach and scale" He pointed to the integration of MoPub, which Twitter said makes the company one of the largest ad exchanges in the world on a mobile app.
After today's bloodbath, the next most telling event will come May 5 when the lockup expires and Twitter founders and executives can sell their shares. The question is whether any of the "insiders" will sell. If they do, it could flood the market with more Twitter shares.
Related: Twitter insiders aren't selling out yet
Analysts have been slashing their estimates of the the company's value.
Concerned by Twitter's user metrics, Rohan cut his estimate of the company's fair value to $43 per share, down a lot from $56. While Rohan raised his 2014 and 2015 revenue estimates slightly, the analyst dimmed his forecast for timeline views and trimmed 2017 user count projections by another 4%.
"We expect continued pressure on shares in the near term," Rohan wrote.
First Published: April 30, 2014: 10:20 AM ET
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