Twitter tanks 20%, loses $7.8 billion market cap

[Jesus Malverde]

Source: CNBC

Shares of Twitter dropped more than 20 percent Thursday—a paper loss of $7.8 billion—after it reported sluggish user growth. The selloff was a sign that the social network will have a tough time regaining its stature with advertisers, at least until it releases better numbers, a senior tech analyst told CNBC.

"To us, when you're talking about opportunities relative to communicating with advertisers, you want to lead with a large and growing and increasingly engaged user base," S&P Capital IQ' s Scott Kessler said on "Squawk on the Street." "And Twitter doesn't seem to have the data to support that proposition."



Read more: http://www.cnbc.com/id/101395956

[Garion_55]

1. i dont get it

why people invest in websites.

social media sites are only as popular as the people using it at the moment and we've seen with myspace that what can be massive one day is a memory the next.

young people are already tired of facebook they've moved on. and when everyone else does there is no business left. how do you invest in a company that doesnt make anything? that can be history in a week because of public opinion?

seems like a suckers game to me

[olddad56]

2. twitter didn't loss that much on paper, the shareholders did.