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Twitter shares drop 11% on slowdown in user growth | |
(about 3 hours later) | |
Shares in Twitter dropped to their lowest levels since the company's stock market flotation, as it reported slower than expected user growth. | |
The number of active users on the social network reached 255 million in the first three months of 2014, up 5.8% on the previous quarter but below analysts' expectations. | |
Twitter also reported a net loss of $132m (£78m) for the latest quarter. | |
But it posted revenue of $250m, $226m of which came through advertising. | |
Despite higher user growth than the previous quarter, when Twitter saw just a 3.8% rise, Twitter's stocks fell by more than 11% in after-hours trading, sending the price below its initial public offering of $38.80 per share. | |
The rise in Twitter active users comes after four consecutive quarters of declining growth, but the turnaround was not strong enough to convince investors. | |
Twitter's chief executive Dick Costolo highlighted the company's revenue increase, and said it was "fuelled by increased engagement and user growth". | |
The integration of advertising management software MoPub had helped Twitter "reach more than 1bn iOS and Android users each month", he added. | |
Another measure of user engagement, timeline views, increased 15% in the first three months of 2014 to 157 billion. | |
But the number of Twitter users is still well below its most high-profile competitor, Facebook, which boasts 1.28 billion active users. | |
WhatsApp, the messaging app Facebook bought for $19bn, recently passed the 500 million user milestone. |
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