You’d think investors would be happy. Twitter just released its first quarterly earnings report as a public company, with revenue and earnings coming in significantly ahead of analyst estimates.
And yet, as of 4:30pm Eastern time, Twitter’s stock had fallen 1 percent in after-hours trading. What happened? Well, the company also said that it now has 241 million monthly actively users — up 30 percent year-over-year, as it says, but only up about 4 percent from last quarter. In other words, it looks like user growth continues to slow.
In addition, Timeline Views, which are another indication of user activity, actually fell 7 percent to 148 billion.
In a way, this feels like a big reversal. As others have pointed out, a couple of years ago, the big concern around consumer social networks (well, mainly Facebook and Twitter) was whether they could actually make money from their rapidly growing user bases. By the time Twitter’s S-1 was revealed to the public last fall, there were questions about whether it had a growth problem, and now it seems those concerns are shaping the public market’s response to the company.
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