Twitter Inc’s user growth stalls as sales forecast falls short of estimates – FINANCIAL NEWS-ecozik.com
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Twitter Inc’s user growth stalls as sales forecast falls short of estimates

Twitter said in a filing it had 320 million average monthly active users in the quarter.

Twitter Inc. said hello didn’t add new users in the fourth quarter and forecast first-quarter revenue which will miss analysts’ estimates, evidence the company’s struggle to make its site more accessible has effects on advertising sales growth.

Revenue in the present period is going to be US$595 million to US$610 million, the San Francisco-based social networking said Wednesday inside a statement. That in contrast to an average analyst projection of US$627.Six million, based on data published by Bloomberg. Monthly active users were 320 million in the last 3 months of the year – the same number the organization reported in the third quarter – while analysts had estimated 324 million.

Twitter shares have dropped 35 percent this year amid deepening skepticism concerning the company’s turnaround efforts under Jack Dorsey, a co-founder who returned late last year as ceo. Dorsey, who started his tenure in October with staff cuts and the appointment of a new chairman, continues to be rallying his teams to make the site more accessible and useful for following news stories and live events, however the company has so far been slow to draw in a wider audience – and also the potentially higher advertising spending that comes with it.

“This is the critical period for Twitter, and they need to show not only optimism,” said Rob Sanderson, an analyst at MKM Partners LLC. “It’s very vulnerable at this time, and particularly as heading into a recessionary environment, those ad money is likely to become more difficult to get – for everyone.”

The company’s shares slid as much as 14 per cent following the earnings report. They rose 4 percent to US$14.98 in the close in Ny, bringing the decline for the past year to 68 per cent.

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