Shortly after that, shares traded at $37.24, pushing the limit of Twitter’s all-time low a bit further. Shares are now trading at $38.10.
Yet, the most surprising part is that the company actually beat Wall Street’s expectations, reporting $250 million in revenue with earnings per share of $0.00 on a non-GAAP basis. Even more impressive, the company’s revenue is up 119 percent year-over-year.
In other words, Twitter is still growing like crazy when it comes to revenue. But this isn’t the magic number investors were looking for. Twitter is still a bigger version of the startup that it used to be. The company’s main focus right now is still growth, growth and growth.
And in this area, Twitter reported a 5.8 percent increase in monthly active users in the three-month period. It’s better than Q4 growth, but today’s downturn proves that it is not enough to satisfy investors.
As a reminder, Twitter opened at a price of around $45 when it went public. It subsequently rose to its all-time high of $74 three weeks after the IPO, before taking a couple of nosedives. The company currently has a market capitalization of around $22 billion.
Illustration by Bryce Durbin