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Twitter shares drop 11% in wake of slowdown in user growth

Wednesday, 30 April 2014 - 4:41pm IST | Agency: ANI

Twitter shares have reportedly dropped by 11% due to the slowdown of user generation, defying analysts' predictions.

The company has also reported a loss of 132 million dollars for the latest quarter but has earned a revenue profit of 250 million dollars through advertisements.

According to The BBC, the number of users of the social network reached 255 million in the first quarter that went up by 5.8% in the previous quarter.

But the website's shares fell by a stooping 11% in after-hours trading, sending the price below its initial public offering of 38.80 dollars per share, the report added.

Dick Costolo, CEO of Twitter placed emphasis on the company's revenue increment and said that it was fuelled by increased engagement and user growth.

However, its biggest rival Facebook has boasted of a booming 1.28 billion active users.

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