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.
Twitter says it wants to reset after years of product stagnation, announcing in February bold goals to expand its user base, speed up new features for users, and double its revenue by 2023.
“The explosive growth that Twitter…