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Twitter user-engagement falls 7%, shares dive
[SAN FRANCISCO] Twitter Inc reported a disappointing 7 per cent slide in a key measure of engagement by its users in the third quarter, triggering a selloff of more than 9 per cent in its stock on Monday.
Some investors had raised fears about declining Twitter usage as other social media and mobile messaging services become more popular. On Monday, the online messaging service also projected fourth-quarter revenue that may miss Wall Street's heightened expectations.
The company reported monthly active users rose 23 per cent to 284 million in the quarter, meeting expectations on an important metric scrutinised by investors, who worry that Twitter's growth has peaked. That followed 24 per cent growth in the second quarter.
But timeline views per user, which measures engagement, slid 7 per cent globally to 636. Views slid 6 per cent in the United States to 774. And overall, total timeline views of 181 billion slightly missed analysts' expectations.
On Monday, the messaging service said revenue more than doubled to US$361 million in the third quarter, beating an average forecast for US$351.4 million. But it projected sales of US$440 million to US$450 million in the holiday quarter, versus expectations for around US$448.8 million.
Shares in the company slid 9.1 per cent to US$44.17 in after hours trading, after closing at US$48.56 on the New York Stock Exchange.