Twitter shares drop on user growth slowdown
Twitter’s share price dropped 11 per cent last night.
The share price of Twitter fell heavily last night (April 30th) after the company announced a slowdown in its use growth.
Although the firm revealed revenue of $250 million (£148.6 million), Twitter still made a net loss of $132 million for the latest quarter. $226 million of its revenues for the three-month period came through advertising.
Twitter's chief executive Dick Costolo stated that the rise in revenues at the company was due to "increased engagement and user growth", as the number of active users on the social network hit 255 million during the first three months of 2014.
He also pointed out that the integration of advertising management software MoPub helped Twitter "reach more than one billion iOS and Android users each month".
But investors were unconvinced by Mr Costolo's comments and even though shares in the firm rose by 4.64 per cent on the New York Stock Exchange yesterday, these gains and more were erased in after-hours trading, when stocks in Twitter lost 11 per cent of their value.
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