Twitter shares reportedly fell to a massive low of 20 percent last Thursday on account of less than expected quarterly results. In the third quarter of 2019, the social media giant shares have lost almost half of the total gains it made this year.
Even though the company’s user base has increased as the number of daily active users has increased, there is a loss in the revenue due to certain essential elements getting impacted.
Twitter Shares Drop to a Seven Month Low in Q3 2019
Q3 earnings of Twitter have dropped significantly, which is a seven month low as the company could not match its revenue and profit estimates. The company also lowered its fourth-quarter revenue guidance.
Twitter shares drop Massively due to Product Issues
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Twitter said that there were specific issues with the product, and reportedly the revenue has been hit by the bugs found in the Twitter App. These bugs impacted the capability of the application to provide targeted ads to users and share relevant data. Also, there has been more than an expected seasonality impact in July and August. The Twitter management stated in the Quarterly Conference Call that the issues with the advertising products would keep on hampering the growth in the next quarter as well.
Q4 Revenue Guidance Lowered
Twitter continued to use data from the consumers who had revoked the permissions to use data. However, company management reduced the Q4 guidance to a range of 940 Million Dollars and 1.01 Billion Dollars. Also, the Operating Margin is reduced between a range of 130 Million dollars to 170 Million dollars.
Twitter Loses its Growth Spree
Twitter has become one of the most popular social media platforms with its innovative concept of sharing messages in a 120 words format. Biggest celebrities, world leaders, artists, and organizations use their twitter handles to communicate with fellow readers and users. It is one of the most used conversational apps on social media, where everyone is Tweeting about the latest issues. Its shares and worth grew immensely ever since its inception; however, now the company is recording losses.
Conclusion
It sold off at a low of almost 20 percent in the third quarter, giving indications that its massive userbase is no longer providing fast growth. The loss in the accredited to seasonal factors and some product issues related to ads.