Twitter Gains in Users Aren't Enough to Spur Ad Growth
- Second-quarter forecast falls short, sending shares down 15%
- Social network added 5 million users on `seasonal' initiatives
Twitter Earnings: 1Q Adj. EPS 15c; Est. 10c
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Twitter Inc. drew more users last quarter after a lull, but not quickly enough to lure greater spending from some major brand advertisers. The results sent shares tumbling the most intraday in eight months.
The company forecast second-quarter revenue that will fall far short of analysts’ estimates. That’s even as Twitter added 5 million monthly active users in the first quarter, for a total of 310 million. Analysts projected 308 million.