Please ensure Javascript is enabled for purposes of website accessibility

Twitter's #Winning Q4 Results Overshadowed by Slowing Growth

By Tamara Walsh – Feb 5, 2014 at 5:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Twitter reported quarterly earnings after the bell today that beat expectations for the social media giant's first quarter as a public company. However, shares slipped on growth concerns.

The market is abuzz as Twitter (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.

Tamara Rutter has no position in any stocks mentioned. The Motley Fool recommends Twitter. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Twitter Stock Quote
Twitter
TWTR

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
351%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.