Twitter Inc. failed to attract more monthly users in the second quarter, spooking investors looking for evidence that the company is on a sustainable long-term growth path.
The shares tumbled more than 9 percent in early trading, even as quarterly revenue topped analysts’ projections.
A long-term turnaround depends on Twitter expanding its audience. That number stands at 328 million monthly active users — the same as in the prior quarter, the San Francisco-based company said in a statement Thursday. Revenue fell 4.7 percent and the company’s net loss also widened, affected by a $55 million writedown of the value of its investment in SoundCloud, the German music streaming service.