Twitter (TWTR) Stock Tumbles, Despite Soaring Revenues
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Getty Images(NEW YORK) — Twitter is growing in global popularity, but not enough for skittish investors.
The social media and mobile messaging company’s shares plunged more than 11 percent despite a jump in third-quarter revenue that more than doubled from last year.
Adjusted earnings matched expectations at 1 cent a share.
To appeal to more people, Twitter has tried to make it easier for people to sign up, and its user base grew 23 percent. Twitter executives say its reach is much more than its 284 million users and that many people see the website without logging on.
One market analyst, however, says that number is misleading.
“It looks good as an overall number, but the actual truth of it once you start peeling back the layers is that there hasn’t been a lot of new eyes on the site and that speaks to the level of innovation of the company,” Danielle Douglas-Gabriel, an analyst for the Washington Post, tells ABC News.
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