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Twitter Inc (NYSE: TWTR) Stock: Why 'The Honeymoon Is Over'

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Shares of Twitter Inc. (NYSE: TWTR) dropped on Monday, falling 2.47 percent to $53.01, less than a week after the microblogging site issued its first- ever earnings report following its highly anticipated initial public offering in November. Although the social media company posted results that beat Wall Street estimates, the company disappointed investors after it announced 241 million monthly active users, short of analysts' expectations.

Twitter last Wednesday posted fiscal fourth-quarter earnings of 2 cents per share on revenue of $243 million, topping Street expectations for a loss of 2 cents on sales of 218 million, according to analysts polled by Reuters.

Expectations are high for the social networking giant, following the company's IPO that saw the stock soar 73 percent to close at $44.90 on Nov. 7, 2013, from the initial price of $26 set ahead of its debut.

For the fiscal 2013 year, the company reported a net loss of $645 million, or an EPS loss of $3.41, and a non-GAAP net loss of $34 million, or an EPS loss of 18 cents. Full-year revenue came in at $665 million, up 110 percent year-over-year.

James H. Gellert, chairman & chief executive officer at Rapid Ratings International Inc., spoke with International Business Times last Thursday about the stock market's reaction to Twitter's disappointing earnings report, and why the "honeymoon" phase for the social networking giant is now over.
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Shares of Twitter Inc. (NYSE: TWTR) dropped on Monday, falling 2.47 percent to $53.01, less than a week after the microblogging site issued its first- ever earnings report following its highly anticipated initial public offering in November. Although the social media company posted results that beat Wall Street estimates, the company disappointed investors after it announced 241 million monthly active users, short of analysts' expectations.

Twitter last Wednesday posted fiscal fourth-quarter earnings of 2 cents per share on revenue of $243 million, topping Street expectations for a loss of 2 cents on sales of 218 million, according to analysts polled by Reuters.

Expectations are high for the social networking giant, following the company's IPO that saw the stock soar 73 percent to close at $44.90 on Nov. 7, 2013, from the initial price of $26 set ahead of its debut.

For the fiscal 2013 year, the company reported a net loss of $645 million, or an EPS loss of $3.41, and a non-GAAP net loss of $34 million, or an EPS loss of 18 cents. Full-year revenue came in at $665 million, up 110 percent year-over-year.

James H. Gellert, chairman & chief executive officer at Rapid Ratings International Inc., spoke with International Business Times last Thursday about the stock market's reaction to Twitter's disappointing earnings report, and why the "honeymoon" phase for the social networking giant is now over. Show less

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