Twitter Inc (TWTR) User Growth Stalls, As the Company Guides Lower

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As if things couldn’t get any worse for Twitter Inc (NYSE:TWTR) shareholders, the company announced their fourth quarter numbers after the bell yesterday.

While Twitter Inc (NYSE:TWTR) reported an adjusted EPS of $0.16, beating consensus estimates of $0.12 quite handedly, it was other information which has painted a bleak picture for the future. Monthly active users for the quarter came in at 320 million. This was below the 323 million that analysts had expected, and equal to the quarter prior, meaning user growth has completely stagnated. Making matters even worse is the company’s revenue guidance for their current quarter. While analysts expected them to guide towards $629 million, Twitter now says that they only expect to realize between $595 and $610 million in revenue for the first quarter.

Shares are down $0.97 ot 6.48% in the pre-market this morning, hitting new 52-week lows. The stock increased 4.03% or $0.58 during the last trading session, hitting $14.98. About 166,427 shares traded hands. TWTR has declined 56.90% since July 8, 2015 and is downtrending. It has underperformed the S&P500 by 48.04%.

From a total of 29 analysts covering Twitter (NYSE:TWTR) stock, 12 rate it a “Buy”, 2 a “Sell”, and 15 a “Hold”. This means that 41% of the ratings are positive. The highest target price is $56 while the lowest target price is $21.0. The mean of all analyst targets is $33.79 which is 125.57% above today’s ($14.98) stock price. Twitter was the topic of 47 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. Mizuho initiated shares on January 13 with a “Neutral” rating. Morgan Stanley maintained shares with a”Underweight” rating and a $22 target share price in their report from an October 28. M Partners maintained TWTR stock in a recent report from November 16 with a “Neutral” rating. Barclays Capital maintained the rating on October 28. Barclays Capital has a “Equal-Weight” rating and a $33 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Sector Perform” rating in a report they issued on an October 28.

The institutional sentiment decreased to 1.07 in Q2 2015. It’s down 0.19, from 1.26 in 2015Q2. The ratio turned negative, as 102 funds sold all their Twitter Inc shares they owned while 129 reduced their positions. 56 funds bought stakes while 191 increased their total positions. Institutions now own 269.03 million shares which is 10.40% less than the previous share count of 300.24 million in 2015Q2.

Institutional Venture Management Xii Llc holds 100% of its total portfolio in Twitter Inc, equating to 418,115 shares. Rizvi Traverse Management Llc owns 2.80 million shares representing 100% of their total US portfolio. Moreover, Ah Equity Partners Iii L.L.C. has 69.57% of their total portfolio invested in the company, equating to 1,202 shares. The California-based Kpcb Dgf Associates Llc has a total of 28.35% of their portfolio invested in the stock. Bain Capital Venture Investors Llc, a Massachusetts-based fund reported 817,155 shares owned.

Twitter, Inc. is a global platform for public self-expression and conversation in real time. The company has a market cap of $9.89 billion. The Firm offers services and products for users, advertisers, developers and platform and data partners. It currently has negative earnings. Products and services for users enables a way for people to create, distribute and discover content, which enables a user on Twitter to create a tweet and a user to follow other users.

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