Twitter Shares Slump on Lower-Than-Expected Revenue Forecast

Twitter Inc. shares fell more than 10 percent in extended trading Tuesday after the social media company forecast third-quarter revenue that fell well short of analysts’ estimates, a sign it’s struggling to win more advertising dollars as user growth stagnates.

Twitter is working to make its service more appealing to a wider group of people after several quarters of stagnant user growth. Without a larger audience, the company may struggle to significantly increase advertiser spending. To combat that, Twitter is trying to create another purpose for its site: streaming live events. That way, the company can draw from advertisers’ video budgets -- often larger checks they normally write to sites like YouTube and Hulu -- instead of competing so directly with Facebook Inc.