Twitter falls flat on the expectation of increasing the user base from the last quarter, resulting in a stock price drop.
(CCM) — In the last quarter, Twitter Inc. lost $116.5 million after failing to increase its monthly user base from the previous quarter. After the announcement of its stagnant monthly active user base at 328 million, the stock price of the company dropped.
Despite having powerful personalities like Trump among the users, the social media platform failed to add new users during the June quarter. In the US, Twitter is losing users. The company reported that its user base in the US declined to 68 million from 70 million. The report is in stark contrast to what analyst had predicted for the company.
Twitter's stock was improving in the first quarter as the company posted strong growth in the first quarter. However, the recent user growth report resulted in the collapsing of stock, as much as 10% in pre-market trading. Twitter has been struggling to woo new advertisers' to the platform as the user growth was on a decline. Subsequently, the revenue of the company also fell by 5% from the same quarter in 2016. If the trend keeps going the same way for Twitter, then it will be hard for the company to grow its sales numbers.
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