Twitter shares fall 10% on user growth slowdown
Microblogging firm makes investors uneasy as prospects for mainstream dwindle
Twitter Inc shares plunged more than 10% yesterday, despite beating revenue estimates, as a reported slowdown in the growth of the platform’s user base caused investors to become jittery.
Among current investor concerns are a decrease in the number of log-ins of registered users and a growing realisation that Twitter may not have the potential for mainstream competition with Facebook.
"Twitter is and will remain a niche medium, and a very powerful one." said Pivotal Research analyst Brian Wieser.
Twitter stock peaked in December at $46bn market capitalisation, but with a mere $665m in revenue on its books for 2013, it was one of the world's priciest stocks.
The microblogging company’s November IPO was a runaway success, not only because it managed to avoid the technical glitches that had beset the IPO of Facebook, but because optimistic outlooks on the platform’s future became contagious, leading to rampant demand for shares in a company that had yet to make a profit.