NEW YORK — Twitter’s third-quarter revenue outpaced expectations, but investors concerned about user growth and holiday-quarter revenue clipped the company’s stock price late Monday.
While the stock closed at $48.56, it fell 7.9 percent to $44.77 after the results came out.
The San Francisco-based company has been trying to increase its user base amid concerns that it doesn’t hold mass appeal in the way that the much-larger Facebook does. Its user base grew 23 percent to 284 million monthly active users in the three months that ended in September, which Forrester Research analyst Nate Elliott said was “better than nothing.”
“It’s hard to be ecstatic about those numbers when it’s still a user base under 300 million people,” Elliott said. “It’s a social property less than a quarter (of the) size of Facebook.”
To appeal to more people, Twitter has tried to make it easier to sign up for and use its service, and it got a boost this summer from promoting itself as a place to follow the World Cup.
In July, its stock spiked 30 percent on the day it posted better-than-expected results and a 24 percent increase in users.
This time, though, the growth apparently wasn’t enough.
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