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Investor confidence in Twitter is waning

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When Twitter first went public there was as much excitement on Wall Street as when Facebook went public. Some of the enthusiasm surrounding Twitter has been fading, at least for now. Shares in Twitter crashed after user growth slowed, reported BBC News on Feb. 6, 2014. The shares of Twitter fell off by 21 percent on Thursday after it was reported the firm had slower growth in user numbers.

In the last quarter of the year Twitter averaged 241 million monthly users, which was up just 3.8 percent on the previous quarter. This has represented a slowdown in comparison with a growth rate of 10 percent which was seen at the beginning of 2013. Twitter also reported a net loss of $645 million for 2013, just three months after it went public. The loss was anticipated by analysts, who tried to highlight Twitter's revenues, which gained 110 percent last year to reach $665 million.

Twitter expects sales of between $230 million and $240 million for the present quarter, which although double last year's sales for the same quarter, would mark the first time that the firm's quarter-over-quarter sales have fallen since the company first began reporting revenue in 2011, reports CNN Money. Twitter reported a net loss of $511 million in the quarter and has not yet earned a profit. Even though most of the loss was due to employees cashing out their stock-based compensation, confidence in the firm is now shaky among many investors.

MandelNews.com

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