Twitter's #Winning Q4 Results Overshadowed by Slowing Growth

The market is abuzz as Twitter (NYSE: TWTR  ) released its fiscal fourth-quarter results after the bell today. The social media giant delivered better-than-expected revenue of $243 million in the quarter, which was a year-over-year increase of 116%. For comparison, analysts were looking for revenue of revenue of $218 million in the period. Twitter also beat profit estimates with earnings-per-share of $0.02 in the quarter, ahead of Wall Street's estimate of a $0.02 loss.

This was an important quarter for the social-media business, because it was Twitter's first earnings report since its initial public offering in November. However, despite what would otherwise be a blowout quarter, investors pushed shares of Twitter lower in after hours trading on concerns that the social-media company's growth is slowing.

For the quarter ended in December, Twitter counted 241 million average monthly users. However, that's up from just 230 million average monthly users in the previous quarter. As a social media company, investors are looking for growth, and Twitter just wasn't able to deliver.

The social-media giant has been on a winning streak since going public late last year. Shares of Twitter surged 73% in their stock market debut, climbing in value from $26 a share to more than $66 a share. However, they're taking back some of those gains today with shares falling more than 16% to trade around $55 as of 5:53 p.m. ET.


Read/Post Comments (3) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 06, 2014, at 10:54 PM, Franko1000 wrote:

    Tammy; I; the foolish moniker known as JamesFranko; might currently be your fortune cookie of finance for the rest of my human existence regardless of my motley thoughts and/ora actions. TWTar only seems to work a few days a week; noteworthy; AMZN deleted my comma button and TWTR still is growing faster than TSLA regardless of the pitch by any known fool. Aall apologies tor any and/or all unfoolish banter by any peanut throwing fan that does not have a purple and/ or blue face.

  • Report this Comment On February 08, 2014, at 5:21 PM, Franko1000 wrote:

    My remote controlled RC Bearfoot has yet to catch on fire.

  • Report this Comment On February 08, 2014, at 5:31 PM, Franko1000 wrote:

    However; Tamiya has a vintage model RC that could potentially put my model out of busniess on the track; AMNZ keeps filling in the wrong words these days. I hope you enjoy the winter games.

Add your comment.

DocumentId: 2825811, ~/Articles/ArticleHandler.aspx, 4/20/2014 12:32:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASD 4,095.52 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/17/2014 4:00 PM
TWTR $45.01 Up +0.59 +1.33%
Twitter CAPS Rating: *

Advertisement