WASHINGTON — Twitter saw its shares plunge at least 25% as the social media platform reported a steep decline in user growth, which cost them about $9.8 billion in market value.
Reuters reported that shares dropped to $50, which is a far cry from their all-time high of $74.73 per share in late December 2013. Twitter’s opening share price was $26.
Even though their fourth-quarter earnings hit $243 million, the decline in user growth worries investors. Twitter averaged about 241 million users in the fourth-quarter, which was only a small 3.8% increase from the previous quarter. It was the lowest growth rate from quarter to quarter since Twitter went public.
Some had originally thought the social media platform would overtake Facebook in time. Now, that is in doubt.