Twitter (TWTR) Stock Plunges, Revenue Guidance Disappoints, Jim Cramer’s View - TheStreet

NEW YORK (TheStreet) -- Twitter (TWTR) - Get Report stock is retreating 10.15% to $28.16 in early morning trading on Wednesday after the company announced after yesterday's market close its revenue outlook for the 2015 fourth quarter that fell short of consensus.

The micro-blogging website expects its revenue to be between $695 million to $710 million for the fourth quarter, falling below analysts' estimates of $739.69 million.

TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust portfolio, and Jack Mohr, research director, had this to say about the guidance in a Real Money Pro post:

"The intraquarter results are far less important than the outlook; in order for investors to have conviction, the company must demonstrate a path toward growth, user engagement and concrete improvements within the core model. At this point, Twitter's oft-cited 'potential,' 'opportunity' and 'differentiation' feel more like a pipe dream than anything else."

Yesterday, Twitter also reported better than expected 2015 third quarter financial results.

The company posted earnings of 10 cents per share for the quarter ended September 30, double what analysts surveyed by Thomson Reuters estimated.

Revenue increased 58% year-over-year to $569.2 million, surpassing estimates of $559.4 million.

Monthly active users rose 11% year-over-year to 320 million for the third quarter.

Separately, TheStreet Ratings team rates TWITTER INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate TWITTER INC (TWTR) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: TWTR

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