Why Twitter, Inc. Stock Plummeted on Thursday

Why Twitter, Inc. Stock Plummeted on Thursday

Why Twitter, Inc. Stock Plummeted on Thursday. So what For its second quarter, Twitter's revenue and adjusted earnings per share were $574 million and $0.12, respectively. While Twitter's 328 million monthly active users were up 5% year over year, the key metric was flat sequentially. Now what Twitter continues to expect revenue growth headwinds. Management said in its second-quarter shareholder letter that it does not expect to see its total revenue growth rate improve in the second half of the year. Specifically, management said it expects $75 million of headwinds associated with the de-emphasis of underperforming revenue products. 10 stocks we like better than Twitter When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. That's right -- they think these 10 stocks are even better buys. The Motley Fool owns shares of and recommends Twitter.

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What happened

Shares of Twitter (NYSE:TWTR) fell as much as 14.1% on Thursday, following the company’s second-quarter financial results. The stock is down about 13.1% at 11:20 a.m. EDT.

So what

For its second quarter, Twitter’s revenue and adjusted earnings per share were $574 million and $0.12, respectively. Both metrics easily exceeded analysts’ consensus estimate for revenue of $537 million and adjusted EPS of $0.05.

Businessman using smartphone
Image source: Getty Images.

Notably, however, Twitter’s revenue and earnings trends highlight a struggling business. Revenue was down 5% year over year, and the company’s GAAP loss widened 9% year over year to $116 million, driven by a $55 million charge related to its previous investment in SoundCloud.

But the worst news from the second-quarter earnings release was arguably the platform’s user metrics. While Twitter’s 328 million monthly active users were up 5% year over year, the key metric was flat sequentially….

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