Twitter shares fall on report for US user growth, analyst price cuts

Twitter shares closed down greater than 10% on Wednesday after the corporate reported disappointing person progress and analysts expressed considerations in regards to the influence of Apple’s iOS privateness adjustments.

In its third-quarter earnings on Tuesday, Twitter stated whole monetizable every day customers (mDAUs) elevated 13% to 211 million, falling shy of the 211.9 million that analysts had been anticipating, based on StreetAccount.

Within the U.S., the corporate’s person base solely grew by a million, or lower than 3%, from a yr in the past.

KeyBanc Capital Markets stated, primarily based on these numbers, that the corporate won’t be able to realize its stated goal of 315 mDAUs by the top of 2023. The agency lowered its worth goal for Twitter from $81 a share to $70. As of Wednesday afternoon, the inventory was buying and selling at $55.31.

“Twitter must materially reaccelerate U.S. and worldwide progress,” to achieve its goal, wrote analysts at KeyBanc wrote in a word to buyers. They nonetheless have a purchase score on the inventory.

Income within the third quarter elevated 37% from a yr earlier to $1.28 billion. Twitter stated fourth-quarter gross sales will likely be $1.5 billion to $1.6 billion, whereas analysts had been predicting income of $1.58 billion.

Twitter stated the influence of Apple’s iOS privateness change was lower than anticipated within the interval, and will likely be modest within the fourth quarter. Snap and Facebook each cited the brand new privateness characteristic, which permits customers to choose out of focused advertisements on apps, as the primary purpose for enterprise disruption within the interval.

Some analysts nonetheless fear that Twitter could also be harmed.

Jefferies cited “the continued uncertainty from the iOS adjustments” as a purpose to decrease its worth goal on the inventory to $70 from $80.

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