Twitter stock dips on engagement-metric concerns

Q3 timeline views down; company downplays worries, claims system enhancements as cause

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Twitter stock dips on engagement-metric concerns Timeline views per user is a metric that counts the average number of times a Twitter user refreshes their personal stream of tweets. (Getty Images)
By  Stephen McBride Published  October 28, 2014

Twitter Inc suffered a 9% decline in its stock price yesterday, even as its user base showed third-quarter growth of 23%, Reuters reported.

Investors' concern lay in a 7% slide in timeline views per user, a metric that counts the average number of times a Twitter user refreshes their personal stream of tweets. Since a fall in this figure reduces the chance that a promoted tweet will be seen by any one user, it is a measure that is closely watched by investors.

While timeline views per user is seen as an important measure of engagement, Twitter rushed to quell fears by claiming that views fell only because of enhancements to its service, which have allowed users to more easily view content and avoid refreshing their tweet feed.

Twitter also projected lower-than-expected fourth-quarter revenue.

The microblogging firm has managed significant growth in users in 2014, also reporting a 24% surge in the second quarter and shares had gained 19% since July before yesterday's plunge.

 

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