Twitter is getting crushed.
Shares fell as much as 12% Wednesday morning after an earnings report on Tuesday evening that sent the stock tumbling.
Twitter beat Wall Street’s expectations on the top and bottom lines. The company reported revenues of $US502 million, up 46% year-over-year and ahead of the estimate for $US481.1 million. Adjusted earnings per share came in at $US0.07, beating the consensus expectation for $US0.04.
Twitter shares initially jumped 6% in after-hours trading. But the plunge really kicked in during the earnings call after interim CEO Jack Dorsey indicated that the platform is not getting as much mass appeal as expected.
He said: “We do not expect to see sustained meaningful growth in [monthly active users] until we start to reach the mass market.”
And this morning, sell-side analysts are reacting to this with downgrades and cuts to their price targets on the stock. Business Insider’s Sam Ro has a wrap of what they’re saying here.
This chart shows the plunge in Twitter’s share price on Wednesday. The stock is down about 11% year-to-date, and 18% over the past year.