Here's What Analysts Are Saying About the Twitter Earnings Report That Sent the Stock Plunging

Lock
This article is for subscribers only.

Twitter has had a rough start to 2015, and things appeared to be much of the same in its second quarter earnings report last night.

Yes, sales and revenue topped analysts’ projections, causing an initial spike in shares after hours. But there was one glaring disappointment: monthly active users. Users of the main application rose by just 2 million from the prior quarter, a gain of less than 1 percent. Chief Financial Officer Anthony Noto said that while the social media firm is adding marketing clients, it doesn’t expect to see “sustained, meaningful” growth in monthly users for a considerable period. That doesn't seem to be what analysts were hoping or expecting to hear, as shares plunged in after-hours trading.