Twitter Is Under Fire, Facebook Not Helping Either

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Twitter Inc. (NYSE: TWT) released its second-quarter financial results before the markets opened on Friday. After Facebook suffered a traumatic loss on Thursday, Twitter seems to be no different. Many thought that this company could win, but the purging did not seem to help, at all.

The social media firm said it had $0.17 in earnings per share (EPS) and $711 million in revenue, while consensus estimates had called for $0.17 in EPS and revenue of $696.2 million. In the same period of last year, Twitter posted EPS of $0.08 on $573.86 million in revenue.

During the quarter, average daily active users (DAU) increased 11% year over year, compared to 10% year-over-year growth in the first quarter, marking another quarter of double-digit year-over-year growth.

Looking ahead to the third quarter, the company expects to see EBITDA in the range of $215 million to $235 million. The consensus estimates call for $0.75 in EPS and $2.91 billion in revenue for the coming quarter.

Ned Segal, Twitter’s chief financial officer, commented:

We are pleased with our performance in the second quarter in DAU growth and delivering for advertisers. We’re maintaining profitability while we make investments in the business, achieving strong revenue growth and introducing product updates that make Twitter both healthier and easier to use. Looking ahead, we remain optimistic about our ability to execute on our priorities and deliver value for advertisers and shareholders.

Shares of Twitter fell about 16% to $36.06 early Friday. The consensus analyst price target is $34.24, and a 52-week range is $15.67 to $47.79.