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Tech stocks: Twitter plunges more than 20%

7:49 AM, Feb 6, 2014   |    comments
TheTwitter logo is displayed at the entrance of Twitter headquarters in San Francisco. (Photo: KIMIHIRO HOSHINO AFP/Getty Images)
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USA TODAY - Shares of Twitter sunk 22% in early trading on Thursday after revealing quarterly results that showed slow user growth.

Although the social network's fourth-quarter report beat Wall Street forecasts, the rate at which Twitter is adding new users has left investors concerned.

After closing at a 52-week high of $73 the day after Christmas, Twitter stock has experienced a steady decline. Twitter shares opened Thursday's markets at $50.61.

For the quarter, the company reports an earnings per share of 2 cents on $243 million in revenue. Analysts had predicted a loss for the quarter.

However, the company boasts 241 million monthly active users, which fell below expectations despite representing a 30% jump from the year before.

The company received stock downgrades from UBS and Sterne Agee analyst Arvind Bhatia, who cites "deceleration in user growth" and drops in user engagement.

Also down this morning: streaming music service Pandora. Its shares are down 9% after its first-quarter guidance fell short of analysts' forecasts. For the fourth quarter, Pandora reported an earnings per share of 11 cents and $200 million in revenue.

(Copyright © 2014 USA TODAY)

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