Twitter breaks tech's blockbuster streak, shares fall on tepid outlook

Twitter posted revenues and user numbers mostly in line with analyst estimates in stark contrast to the better performing digital ad firms like Facebook and Alphabet.

Twitter Inc shares sank 11% in post-market trading on Thursday as it offered tepid revenue guidance for the second quarter, warned of rising costs and expenses and said user growth could slow as the boost seen during the coronavirus pandemic fizzles. The social media company posted revenues and user numbers mostly in line with analyst estimates, in stark contrast to the better performing digital ad firms like Facebook Inc and Alphabet Inc's. It said it expected second quarter revenue between $980 million and $1.08 billion, lower than Wall Street estimates of $1.06 billion on average, according to IBES data from Refinitiv. It also said stock based compensation for new hires would be more than expected this year.