Twitter shares plummet after user growth falls short
Twitter’s stock price plunged in premarket trading Friday as the social network added far fewer users than Wall Street expected in the third quarter.
The San Francisco-based tech giant’s shares were down 15.5 percent at $44.30 as of 7:35 a.m. a day after it reported having 187 million average monetizable daily active users from July to September, an increase of just 1 million from the prior quarter.
The figure marked a 29 percent increase from the same period last year but fell well short of Wall Street analysts’ expectations for 195.2 million users.
Twitter also predicted a rocky three months ahead as it navigates the presidential election and scrutiny of its attempts to limit political disinformation, which drew fire from Republicans at a heated Senate hearing this week.
Twitter’s third-quarter revenues climbed 14 percent from last year to $936 million, but the company said it’s “hard to predict” how advertisers might react as the contentious election nears.
It noted that many brands paused or slowed down ad spending amid the anti-police brutality protests that swept the nation in May and June.
“The period surrounding the US election is somewhat uncertain, but we have no reason to believe that September’s revenue trends can’t continue, or even improve, outside of the election-related window,” chief financial officer Ned Segal said on a call with investors Thursday.
Twitter also expects its costs and expenses to grow close to 20 percent in the fourth quarter because of increased investments that it had intended to make before the COVID-19 pandemic struck.
Twitter’s earnings report came a day after Sen. Ted Cruz ripped CEO Jack Dorsey over the company’s handling of The Post’s articles about Hunter Biden, the son of Democratic presidential candidate Joe Biden.
Twitter locked The Post out of its primary Twitter account and blocked users from sharing the links to articles based on emails from a laptop that reportedly belonged to the younger Biden. The platform later lifted its blockade on the links but continues to prohibit The Post from tweeting from its main account.
With Post wires
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