Twitter Fails to Grow Its Audience, Again
- Monthly active users in the U.S. fell, as did ad revenue
- Company says it doesn’t expect sales growth to improve in 2H
Bob O'Donnell, Technalysis Research president, and Bloomberg's Cory Johnson discuss Twitter Inc.'s user growth and ad revenue with Bloomberg's Emily Chang on 'Bloomberg Technology.' (Source: Bloomberg)
Twitter Inc. failed to attract more monthly users in the second quarter, spooking investors looking for evidence that the company is on a sustainable long-term growth path. The shares tumbled the most in nine months, even as quarterly revenue topped analysts’ projections.
A long-term turnaround depends on Twitter expanding its audience. That number stands at 328 million monthly active users -- the same as in the prior quarter, the San Francisco-based company said in a statement Thursday. Revenue fell 4.7 percent and the company’s net loss also widened, affected by a $55 million writedown of the value of its investment in SoundCloud, the German music streaming service.