Twitter did, however, see its total monthly active users tally jump to 241 million -- an increase of 30 percent year-over-year. by Don Reisinger and Don Reisinger February 6, 2014 6:55 AM PST Twitter CEO Dick Costolo might not be smiling today. (Credit: Daniel Terdiman/CNET) Twitter shares have slid more than 22 percent in early trading on Thursday as shareholders take a step back after a disappointing fourth quarter. Twitter shares fell to just over $50 in early trading on Thursday from their Wednesday closing price of $65.97. The dip comes after Twitter acknowledged on Wednesday that while its total monthly active user tally is up to 241 million -- a 30 percent increase year-over-year -- its service's design is making it too difficult for users to actually use the service, prompting slowed new-user growth. Twitter also expressed concern over existing users employing its service less often. Soon after the news was announced, Twitter's shares dropped Wednesday more than 18 percent in after-hours trading. In pre-market trading on Thursday, shares dropped 23 percent. The news has also sent shockwaves through the analyst community. On Thursday morning, Sterne Agee analyst Arvind Bhatia downgraded Twitter to a rating of "Underperform." He now believes that Twitter's shares will fall to $43 over the next 12 months.
Twitter did, however, see its total monthly active users tally jump to 241 million -- an increase of 30 percent year-over-year.
February 6, 2014 6:55 AM PST
Twitter CEO Dick Costolo might not be smiling today.
(Credit: Daniel Terdiman/CNET)
Twitter shares have slid more than 22 percent in early trading on Thursday as shareholders take a step back after a disappointing fourth quarter.
Twitter shares fell to just over $50 in early trading on Thursday from their Wednesday closing price of $65.97. The dip comes after Twitter acknowledged on Wednesday that while its total monthly active user tally is up to 241 million -- a 30 percent increase year-over-year -- its service's design is making it too difficult for users to actually use the service, prompting slowed new-user growth. Twitter also expressed concern over existing users employing its service less often.
Soon after the news was announced, Twitter's shares dropped Wednesday more than 18 percent in after-hours trading. In pre-market trading on Thursday, shares dropped 23 percent.
The news has also sent shockwaves through the analyst community. On Thursday morning, Sterne Agee analyst Arvind Bhatia downgraded Twitter to a rating of "Underperform." He now believes that Twitter's shares will fall to $43 over the next 12 months.
