Twitter shares drop on slowing user growth
February 10, 2016 5:51 pm
Shares of Twitter fell in after-hours trading as the company’s quarterly results showed user growth faltering.
Twitter reported a net loss of $90m (£62m) for the last three months of 2015 versus a loss of $125m a year ago.
The social media site saw its user growth stall, with 320 million average monthly active users – the same number as the previous quarter.
Revenue for the quarter rose by 48% to $710m compared to the fourth quarter of 2014, matching analysts’ expectations.
Rival social media sites like Facebook and Instagram have seen their user bases grow.
Investors had been anticipating the announcement of major changes to Twitter’s product offerings to increase the user base.
The company announced earlier on Wednesday that it would be introducing a new feature that shows the best tweets at the top of a user’s feed, rather than showing tweets in reverse chronological order.