Twitter Shares Slump On The Back Of Weak Earnings
Social media site, Twitter has fresh concerns as its share prices plunge on the back of weak earnings in the first quarter of 2016.
Twitter has struggled with user growth and has remained unable to push beyond the 300 million user mark as it carried over the same poor numbers from the last quarter.
The company reported 310 million monthly users in the first quarter while revenue was $594.5m, falling short of expectations following its equally poor showing in the fourth quarter of 2015 and causing share prices to drop.
The financial report seemed to directly impact investor confidence as the company’s shares plunged by 13.6%. Twitter has attempted to introduce quite a number of innovations to improve popularity among which is the algorithmic timeline.
Although 5 million active users were gained this quarter, it is seen as unsubstantial growth as the company flirts with uncertainty.