In a turn of events that won’t garner many “favs” by social media investors, Twitter Inc. ($TWTR) stock took a steep dive of about 20% on Tuesday, after earnings were leaked on (where else?) Twitter.
The news broke over the course of four tweets on the Twitter account of financial intelligence service Selerity, which included first-quarter earnings, revenue and user figures for the social media site.
— Selerity (@Selerity) April 28, 2015
Within 25 minutes, Twitter issued a press release that confirmed the figures cited by Selerity.
“While we exceeded our EBITDA targe for the first quarter, revenue growth fell slightly short of our expectations due to lower-than-expected contribution from some of our newer direct response products,” said Twitter CEO Dick Costolo in the release.
Sell Sell Birdy
Although Twitter’s earnings actually came in higher than estimates, both revenue and the number of mobile monthly users for the service missed estimates. Their adjusted first-quarter earnings stand at seven cents per share, on revenue of $436 million – worse than the most pessimistic estimates among the 36 analysts compiled by Reuters.
After the initial leak by Selerity, Twitter stock fell approximately 6%. Trading of the stock was then halted, after which the stock re-opened at about $39.21 – more than 20%.
Selerity says that it garnered the information off Twitter’s investor relation website, insisting there was “no leak, no hack.” Yet, the tweets are still widely being referred to as such by most publications (this one, included).
Semantics aside, the news will likely see the birdy flying awfully low for the foreseeable future.