On Thursday, Twitter stock opened at $50 a share, which is down more than 23% of its lowest trading price in the last two months. Wall St. clearly isn’t feeling the tweet.
The sudden drop followed Twitter’s fourth quarter earnings report, its first such report since becoming a public company. Shockingly, it had nothing to do with actual revenue, which actually surpassed Wall St. estimates. The drop was due to slow user growth and a decline in engagement.
“Expectations were higher for Twitter,” says Arvind Bhatia, an analyst with Sterne Agee. “User growth and engagement are going to be the key metrics [going forward] because we all know that impacts how people think about the longterm on this company.”
Even if you got in early, you’re still ahead of the game. Twitter IPO’ed at $26, so you’ve still doubled up. And for what it’s worth, it closed out the week at $54.35.