What do you call a "growth" stock that has stopped growing?
TWTR!
While earnings (top and bottom line were ok):
- *TWITTER 4Q ADJ. EPS 16C, EST. 12C
- *TWITTER 4Q REV. $710M, EST. $709.9M
Not only did they reduce guidance:
- *TWITTER SEES 1Q REV $595M-$610M, EST. $627.6M; SHARES FALL 11%
And miss expectations on usewr growth overall:
- TWITTER 4Q TOTAL MONTHLY ACTIVE USERS 320M, EST. 324M
But the "growth" in users has ceased.
And here is the reason why the stock is crashing: total US monthly active users actually declining by 1 million to 65mm in Q4. The growth is over, and now the contraction begins.
Don't worry they note however:
- *TWITTER SEEN JAN MONTHLY ACTIVES BOUNCE BACK TO 3Q LEVELS
Maybe a weather thing? And this the reaction in the stock - an 11% crash after hours to new record lows...
Time for some buybacks?