Twitter shares are down 10% this morning, after reporting that the company saw zero user growth in the past quarter.
This comes on the heels of Facebook announcing they grew by 70 million Monthly Active Users (MAUs) yesterday, eclipsing 2 billion users for the first time ever.
Even worse than stalled growth is the losses in users seen in North America. Twitter went from 70 million MAUs on the continent last year, but that number has fallen to 68 million.
Despite all this, there were a few positives for the social network:
- EPS: 12 cents vs. 5 cents expected, according to Thomson Reuters.
- Revenue: $574 million vs. $536.7 million expected, according to Thomson Reuters.
It’s clear that Wall Street doesn’t care nearly as much about the earnings as they do about the user growth. Until Twitter can address this, it’s going to be an uphill battle.