Twitter shares plummeted 20%

Shares of the US microblogging service Twitter fell 20.8% to $30.7 per share, according to the New York Stock Exchange. The company's capitalization fell by almost $6 billion.

• The fall in quotes occurred after the publication of Twitter's financial statements for the third quarter. The company reported revenue growth of 8.7% to $823.7 million, but analysts had expected revenue of $876 million. Twitter lowered its fourth-quarter revenue guidance to $940 million, while analysts had forecast $1.06 billion.
• Net income in the quarter also fell short of expectations. The indicator fell 21.6 times to $36.5 million.
• The company explained the poor performance by the fact that in the third quarter the service encountered problems in the system for promoting ads, and this reduced advertising revenue.
• This is a long-term problem, CNBC emphasizes : the platform has closed some ad targeting options due to possible violations with the transfer of user data to third parties, and this has reduced the attractiveness of Twitter for advertisers.
• “Despite the challenges, the quarterly results confirm the effectiveness of our long-term growth investment strategy,” said Twitter CFO Ned Segal.