Twitter shares hit all-time low as slide continues

Twitter shares plunged to an all-time low on Tuesday, an indication that Wall Street remains queasy about the microblogging site’s struggling performance and gloomy prospects.

The social network’s shares tumbled to $13.90 a share Tuesday. That was 46.5 percent below the company’s stock price of $26 a share for its initial public offering in November 2013.

The weak performance for Twitter shares has been going on for some time. In August 2015, Twitter’s stock fell below the IPO price for the first time. The downhill trend has continued since then and even intensified.

Matters worsened last week, when Twitter released its first-quarter results. Twitter posted revenue that was well below expectations, offered a feeble outlook for the second quarter, and disclosed that brand marketers weren’t spending as much on advertising.

Despite those brutal disclosures, Jack Dorsey, Twitter’s chief executive officer, emphasized the positive for the social network during a conference call with analysts.

“We made a lot of progress on product innovation this quarter, particularly with live video and our refined timeline and people love it,” Dorsey told the analysts during the call. “We remain focused on improving our service to make it fast, simple and easy to use.”

San Francisco-based Twitter reported quarterly revenue of $595 million, which was a 36 percent jump from the year-before first quarter. Analysts, though, were looking more for $608 million in revenue.

Revenue guidance was a mile below what Wall Street was expecting. Twitter predicted revenue would range from $590 million to $610 million, which was well under the $677.6 million figure guessed by analysts.

Even worse, the guidance for the second quarter suggests that the pace of revenue growth would be hobbled.

If Twitter manages $600 million in revenue, that would amount to a 19.5 percent increase in revenue growth, roughly half the increase for the first quarter.

Twitter recently struck a deal with the National Football League for the rights to live stream 10 NFL games on Thursday nights during the upcoming 2016 season.

That agreement could lead to more deals for Twitter.

“As soon as we announced that deal, almost every league in the world contacted us, because they want to provide an even better experience for their fans,” Dorsey said.


Photo: The Twitter building is photographed Dec. 14, 2015, in San Francisco, Calif. (Karl Mondon/Bay Area News Group)


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